UAE - Mubasher: IHS Markit UAE Purchasing Managers' Index (PMI), focusing on the non-oil private sector, recorded above 50.0 in September for the third time since the coronavirus (COVID-19) outbreak and the imposition of lockdown.
The IHS Markit UAE PMI increased to 51.0 in September from 49.4 in August, the highest reading for 11 months and reflecting the renewed improvement in the private sector economy, according to a press release on Monday.
However, this reading remained below its trend level of 54.3 and refers to only modest growth in overall business conditions.
The rise in the index is driven by higher output by the end of the third quarter (Q3) of 2020, supported by a solid uplift in new business and a recovery in consumer demand.
In addition, companies registered an increase in export sales for the second time in eight months.
Rising business activity levels have led to a slower fall in private sector employment in September; however, some firms have cut workforce numbers to optimise business expenses amid COVID-19 and manage cash flow.
The Economist at IHS Markit, David Owen, said: "More concerning is a recent rise in confirmed COVID-19 cases that could lead to lockdown restrictions being reimposed in the future. Given the weak nature of the current rebound, any further measures could lead to a "double-dip" in business activity."
