UAE – Mubasher: The UAE Purchasing Managers' Index (PMI), an indicator for the performance of the non-oil private sector, retreated to 44.1 in April 2020 from 45.2 in March, recording a new low for the second month in a row.
This drop indicates the business' deteriorating performance due to the lockdown measures caused by the coronavirus (COVID-19) outbreak, which has led to a sharp decline in new business and export sales, according to a report by IHS Markit.
Meanwhile, input costs fell in April due to a sharp cut in employment rates, a decrease in wages, and weaker purchases as companies are trying to lower expenses amid the pandemic.
However, the rate of job reduction in April was lower than that witnessed in March.
At the same time, the tourism sector saw a sharp downturn due to COVID-19's travel restrictions, which resulted in a steep decline in the export business for the first time since August 2009.
The economic outlook for future activities for the non-oil private sector in the UAE reached the worst level since August 2017.
IHS Markit Economist, David Owen, noted: "The full month of lockdown measures and business restrictions led to a steep decline in UAE non-oil private sector activity in April."
"While firms on balance remain optimistic of growth in the coming year, some panellists were apprehensive, noting that the risk of an economic downturn was increasing," he added.
