UAE - Mubasher: The output of the UAE's non-oil private sector increased in June for the first time since December 2019 as the country is easing the coronavirus (COVID-19) restrictions, according to IHS Markit UAE Purchasing Managers' Index (PMI).

IHS Markit UAE PMI, which focuses on the conditions of the non-oil private sector, climbed to 50.4 in June to show the sector's first improvement in 2020.

The June PMI also reflects a rise in the number of sales, as the suppliers' delivery times component was over 50 for the first time since February.

The higher demand for inputs led to higher purchasing costs for the second consecutive month, as new businesses began to improve.

However, companies continue to witness the after-effects of the COVID-19 lockdown, pushing them for further layoffs and salary cuts to reduce costs.

"Despite this positivity, looking at the data over the past few months shows just how large a rebound in output is required to return the UAE economy to pre-COVID levels. Renewed growth in June marked only a slight reprieve from the downturn that reached its peak in April," commented David Owen, an economist at IHS Markit.