UAE - Mubasher: The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI) rose from 52.2 in June to 54.0 in July, reflecting the strongest rate growth in the UAE non-oil economy in two years.
This strong improvement is attributed to the recovery in demand from the coronavirus (COVID-19) pandemic and the rise in new orders and output to the highest levels since July 2019, according to a press release on Tuesday.
Meanwhile, the employment rates increased at the fastest rate since January 2019.
However, delays to shipments from Asia led to the worst lengthening of suppliers' delivery times since April 2020 and contributed to a quicker rise in input costs.
The Economist at IHS Markit, David Owen, said: "UAE's non-oil sector enjoyed a busy start to the third quarter of the year, as firms saw the sharpest rise in new orders for two years amid soaring domestic sales and strengthening market confidence. Output rose in line with this expansion, but was not enough to cover outstanding business which increased to the greatest extent for 16 months."
Owen added: "Moreover, new orders from abroad disappointed again in July as sales were hindered by pandemic-related measures around the world."
