UAE - Mubasher: The UAE’s non-oil private sector continued to improve for the seventh consecutive month in June, but at a slightly slower pace than in May, a report showed on Monday. 

The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI) recorded a four-month low after slipping to 52.2 in June, compared to 52.3 in May. A reading above 50 indicates expansion, while a reading below that signals contraction.

Output growth remained steady at the end of the second quarter (Q2) as material shortages curbed rising activity linked to higher new order inflows.

While new orders increased, the rate of growth weakened for the second month in a row as new export orders plunged at the fastest pace for just over a year. 

"Business conditions continued to improve at only a gradual pace in June, adding evidence to a mixed initial recovery from COVID-19 in the UAE non-oil sector,” David Owen, an economist at IHS Markit, said. 

"Firms often mentioned that material shortages had hampered output growth, while new sales were curtailed by travel restrictions."

Employment rose for the first time since January, while price inflation increased amid supply problems in June.

“Sustained sales growth and a slightly improved outlook for future activity encouraged firms to expand their workforce numbers in June,” the report showed.

Owen noted that “further boosts to confidence and a drop in COVID-19 cases are likely needed to push the economy into another gear."