Business conditions in the United Arab Emirates last month rose to the highest level since 2019 as pandemic restrictions eased.
A Purchasing Managers’ Index compiled by IHS Markit rose to 54 in July from 52.2 in the previous month, remaining above 50, themark that separates growth from contraction. The survey showed business activity improved in the non-oil sector.
“Firms saw the sharpest rise in new orders for two years amid soaring domestic sales and strengthening market confidence,” said David Owen, an economist at IHS Markit. “Output rose in line with this expansion, but was not enough to cover outstanding business which increased to the greatest extent for 16 months.”
Read: UAE Employment Rises at Fastest in More Than Two Years, IHS Says
Despite the domestic improvement, lockdown measures in other parts of the world led to a drop in export sales in July, as firms turned to local clients for support. Still, growth prospects remained, with companies hoping that Expo 2020 would strengthen economic conditions.
©2021 Bloomberg L.P.