UAE’s non-oil economy improves in December; jobs decline further

UAE’s non-oil economy improves in December; jobs decline further

UAE - Mubasher: IHS Markit UAE Purchasing Managers' Index (PMI) increased to 51.2 in December from 49.5 in November, recording its highest level for 16 months.

This higher level of the index, which focuses on operating conditions in the non-oil private sector economy, is supported by a faster increase in sales and a strong rise in export demand, according to a press release on Tuesday.

Meanwhile, output has begun to grow again at the end of 2020, driven by an improvement in market conditions and a sustained rise in client demand

The UAE also witnessed a rise in new business during December, which is mainly linked to an upturn in new export orders that recorded the strongest rate in 15 months.

Although the index registered a higher level, the growth rate in the sector was mild and employment rates declined further.

The Economist at IHS Markit, David Owen, said: "Rising output and new orders, particularly from abroad, were key drivers of the renewed improvement in non-oil business conditions in December."

Owen added: "The subdued rate of cost inflation may help struggling businesses in the near