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UAE PMI sees fourth contraction in row - IHS Markit

UAE PMI sees fourth contraction in row - IHS Markit
May's PMI has reflected a considerable decline

UAE - Mubasher: The IHS Markit UAE Purchasing Managers' Index (PMI) increased to 46.7 in May from 44.1 in April, according to a press release on Wednesday.

May's PMI has reflected a considerable decline in the UAE's non-oil private businesses in May amid coronavirus (COVID-19), marking the fourth consecutive decrease, due to a fall in demand.

Export orders declined for the fourth month in a row due to the ongoing lockdown measures in GCC countries and other markets

In addition, the companies continued to cut jobs in May alongside salary deduction amid the rising cost pressures.

However, the figure indicates an improvement in the non-oil private activities in May, when compared to April's record, because the UAE eased the lockdown restrictions and allowed for the reopening of businesses.

The Economist at IHS Markit,  David Owen, said: "Lockdown measures worldwide have notably reduced exports, as well as limiting input supply. However, May data suggested that these impacts are lessening as some countries move to lighter measures."

Owen added: "Businesses also reported a fall in future output sentiment to the joint-lowest ever, illustrating concerns of a drawn-out economic recovery and long-lasting impact on activity."