UAE’s non-oil private sector economy returns to growth in June as pandemic restrictions eases – The National

UAE’s non-oil private sector economy returns to growth in June as pandemic restrictions eases – The National

New orders grew at a solid rate, driving the first increase in output since December

















Dubai's skyline - the private sector economy in the UAE returned to growth in June. Reem Mohammed / The National







The UAE's non-oil private sector economy returned to growth in June, the first increase in output since December, as the Arab world's second-largest economy continued to relax restrictions put in place to stem the spread of the coronavirus pandemic.



The seasonally-adjusted IHS Markit UAE Purchasing Managers' Index - a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil private sector economy - improved to 50.4 in June from 46.7 in May. New business in the emirates drove the first improvement in operating conditions for six months.





The upturn was also the strongest since October 2019, but weaker than the series average. A reading above a neutral 50 level indicates economic expansion and below points to a contraction.



"At 50.4 in June, the UAE PMI signalled the first stage of recovery in the non-oil private sector,“ David Owen, an economist at IHS Markit, said. "More firms are now seeing an increase