UAE: PMI inches down in June
The IHS Markit Purchasing Managers’ Index (PMI) ticked down to a four-month low of 52.2 in June from May’s 52.3. Consequently, the index remained above the 50-threshold, signaling a continued improvement in business conditions in the non-oil private sector from the previous month, albeit at a marginally slower pace.
Output growth was stable in June amid mixed demand conditions. While some firms saw demand improve thanks to the easing of the impact of the pandemic, others reported flight cancellations and travel restrictions weighing on tourism projections. That said, new orders increased overall, albeit at a more moderate pace than in the month prior. Meanwhile, employment levels increased for the first time in five months in June and at the strongest pace in nearly two-and-a-half years. On the price front, the supply constraints of raw materials and higher transport charges resulted in purchasing costs increasing at the fastest pace in three months. As such, output prices also rose in June as firms passed on costs to clients.