UAE - Mubasher: The IHS Markit UAE Purchasing Managers' Index (PMI), focusing on operating conditions in the non-oil private sector economy, recorded 51.2 for the second consecutive month in January.
Although the IHS Markit UAE PMI recorded the highest level since August 2019, the business conditions in the UAE witnessed a slight improvement since the end of 2020, according to a press release on Wednesday.
The UAE's non-oil business activities have expanded in January, driven by higher client sales and a resumption of construction projects.
The expansion in both output and new orders has led to a modest rise in the employment rates, putting an end to a year-long sequence of job layoffs.
However, demand growth retreated from December 2020 amid increased uncertainty over the future of the coronavirus (COVID-19) pandemic with a surge in local and global cases.
The Economist at IHS Markit, David Owen, said: "Compared to the results seen throughout 2020, the latest data indicated more favourable business conditions. However, with firms still having to make up lost ground from the COVID-19 lockdown, the pace of recovery so far appears subdued."
Owen added: "The rapid roll-out of COVID-19 vaccines in the UAE should help to restore confidence in markets over the first half of 2021, although firms were still relatively downbeat about future growth in January."
