UAE - Mubasher: The IHS Markit Dubai Purchasing Managers' Index (PMI), focusing on the non-oil private sector economy, increased for the first time in five months to register 51.7 in July, compared to a neutral reading of 50 in June.

The July PMI indicated growth in Dubai's non-oil private sector for the first time in five months, according to a press release on Tuesday.

The recovery in Dubai's economy is driven by higher consumer demands and sales, as the coronavirus (COVID-19) restrictions were eased and international flights were resumed.

Meanwhile, the emirate registered a robust expansion in output since the beginning of the third quarter (Q3) of 2020, with the best growth rate in 2020.

The growth in Dubai's business activities has been led by the construction and wholesale and retail sectors.

 Although the travel and tourism sector recorded the first rise since February, they are still affected by COVID-19.

However, the employment rate in Dubai has retreated for the fifth month in a row, as firms are trying to lower total costs and ease pressure on margins.

"Despite the non-oil economy gaining traction, businesses optimism of a rise in activity in the next 12 months weakened in July. According to firms, uncertainty around the length of a recovery from the COVID-19 crisis is growing," economist at IHS Markit, David Owen, said.