UAE non-oil sector showed signs of improvement in May; job numbers disappoint

UAE non-oil sector showed signs of improvement in May; job numbers disappoint

The UAE non-oil economy continued to recover midway through the second quarter, as domestic demand improved on the back of rising confidence surrounding the COVID-19 pandemic, a survey showed on Thursday. While output rose at a solid pace, employment numbers continued to slow down and input purchases increased only slightly. The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, edged down to 52.3 in May from 52.7 in April, highlighting a moderate improvement in business conditions. Improving domestic sales helped new orders, whereas international orders were stymied by COVID-19 restrictions in some destinations for UAE exports, the IHS Markit report said. "UAE's non-oil private sector showed further signs of improvement in May, although growth slipped marginally from April's recent high. New orders were largely supported by domestic sales, as latest data signalled a slight decrease in export orders," said David Owen, economist at IHS Markit. Surveyed firms highlighted that competition in the market and uncertainty linked to the pandemic led to reduced new orders, prompting companies to lower their selling prices. Several businesses kept employment numbers unchanged in May, while some firms cut their staff levels due to cash flow issues. As a result,