UAE - Mubasher: IHS Markit UAE Purchasing Managers' Index (PMI), an indicator focusing on the non-oil private sector, went up to 50.8 in July from 50.4 in June.

The index reflects an improvement in the sector for the second month in a row, as the coronavirus (COVID-19) lockdown and restrictions on business activities are being eased, according to a press release on Wednesday.

Further easing in restrictions has led to higher customer demand at the beginning of the third quarter (Q3), encouraging companies to increase their production in July. 

However, the UAE businesses are witnessing a modest recovery from the economic contractions due to the COVID-19 pandemic.

Meanwhile, companies have continued to cut jobs to reduce payroll costs for the seventh consecutive month, while experiencing some weakness in sales to foreign customers and new export orders.

"It was also particularly evident that future output sentiment depended on how demand recovered in the coming months, as firms hope that the economy will make strides back to pre-COVID-19 output levels over the second half of 2020," economist at IHS Markit,  David Owen, commented.