The United Arab Emirates (UAE) non-oil private sector grew in June for the first time this year, emerging from months of contraction as coronavirus restrictions were lifted, a survey showed on Sunday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index , which covers manufacturing and services, rose to 50.4 in June from 46.7 in May, edging above the 50.0 mark that separates expansion from contraction.
“At 50.4 in June, the UAE PMI signalled the first stage of recovery in the non-oil private sector. More firms are now seeing an increase in activity as opposed to a decline, while new orders grew at the fastest rate in ten months,” said David Owen, economist at survey compiler IHS Markit. Output levels grew at their strongest pace since October last year and new orders grew at their fastest since August as demand improved after the easing of lockdown measures.
In late June, the UAE announced the lifting of a nightly curfew in place since mid-March. The daily number of infections has fallen from a peak of some 900 in late May to average between 300 and 400 in recent weeks.Despite the jump in the headline index, companies are still cutting costs after months of lower activity, which led to a drop in the employment sub-index to 46.4 from 48.7 in May.
“Evidence from panellists suggested that balance sheets remain in a tricky situation, as firms made another solid cut to workforces in order to reduce costs. Thus it may be a long path to recovery for the labour market,” Owen said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China's services sector grows at fastest pace in over a decade in June: Caixin PMIChina's services sector expanded at the fastest pace in over a decade in June as the easing of coronavirus-related lockdown measures revived consumer demand, a private survey showed on Friday, though companies continued to shed jobs.
Read more »
Weak demand slows recovery in German services sector in June: PMIWeak demand is holding up a more pronounced recovery in Germany's services sector, which is slowly coming back to life after the country lifted restrictions it imposed to slow the spread of the coronavirus, a survey showed on Friday.
Read more »
Saudi non-oil private sector shrinks again in June - PMISaudi Arabia's non-oil private sector shrank for the fourth straight month in June as measures to contain the spread of the new coronavirus continued to hit consumer demand, a survey showed on Sunday.
Read more »
Private sector rehires 2.37 million workers in June, ADP saysThe private sector rehired 2.37 million jobs in June, ADP says. Economists surveyed by Econoday expected a gain of 3.5 million. Small employers added the most jobs, and the service sector experienced a large gain.
Read more »
These 6 charts break down the June jobs report, economic recovery - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »