UAE showing signs of recovery as coronavirus restrictions ease

UAE showing signs of recovery as coronavirus restrictions ease

As the UAE emerges from stringent lockdown measures, the non-oil sector remained firmly in contraction territory in May despite some signs of recovery.. Output fell to a much lesser extent than April's unprecedented pace firms were still limited by a weak market environment and lower employment, IHS Markit UAE Purchasing Managers' Index shows.. "Greater freedom of travel led to an easing of supply chain pressures, while input costs ticked up for the first time since February.. Sentiment towards future output dipped to the joint-lowest ever seen in the series, as businesses became increasingly concerned over the long-term impact of the Covid-19 pandemic on the economy," said the report.. The PMI increased from a record low of 44.1 in April to 46.7 in May. "Despite reaching the highest in three months, the latest figure indicated a solid decline in business conditions.. As several businesses were able to reopen and increase output due to lighter curfew measures, the rate of decline eased back from April's record.. Many firms highlighted that client demand had so far failed to recover, indicated by another sharp decrease in new order volumes.. David Owen, economist at IHS Markit, said the change in curfew hours in May helped