UAE - Mubasher: The IHS Markit UAE Purchasing Managers' Index (PMI) retreated to 49.5 in October from 51.0 in September to mark the second downturn in the UAE's non-oil private sector economy in three months.
The decrease in PMI reflects the negative effect of the coronavirus (COVID-19) outbreak on the economic recovery, the decline in new business for the first time since May, and the fall in demand, according to a press release on Tuesday.
The UAE saw a slower rise in output of the non-oil private sector and a sharp reduction in backlog volumes.
The sales volumes declined over the month, driven by a slow improvement in market conditions, while exports mildly grew as COVID-19 are spreading again in some regions.
Meanwhile, the employment rates registered a further retreat at the start of the fourth quarter (Q4) of 2020, as firms are trying to reduce costs amid slow recovery and weak revenues.
The Economist at IHS Markit, David Owen, said: "While the decline was mild, it nonetheless showed a stalling of growth momentum after the COVID-19 lockdown. Notably, sentiment amongst businesses towards the 12-month outlook was at a joint-record low as firms remained concerned that the pandemic could further hurt activity and spending."
