Dubai - Mubasher: The headline seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index (PMI), an indicator of non-oil private sector’s operative conditions, levelled up to 56.5 points in May from 55.1 a month earlier.

This increase was the effect of the improvement of business conditions across the UAE non-oil private sector, according to a survey sponsored by Emirates NBD and produced by IHS Markit.  

“The strong PMI reading in May was partly due to a rebound in export orders - reflecting improved external demand conditions - as well as significant price discounting domestically,” head of MENA research at Emirates NBD Khatija Haque commented.

As a result of higher demands, especially from the GCC, the non-oil sector output grew in May, which – added to the project wins and developments surrounding Expo 2020 – boosted the positive sentiment in the market, the survey found

Furthermore, employment improved slightly during the surveyed period but hiring is still under the long-run average.

Operating costs increased “modestly” due to the raised input cost, IHS Markit’s data revealed.

“While the headline index shows strength in activity, profit margins remain under pressure,” Haque said.