For the seventh month in a row, with employment increasing for the first time in 5 months

The growth of the non-oil private sector in the country during June

Working conditions continue to improve at a gradual pace.

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The “IHS Markit” index of purchasing managers in the Emirates showed that the non-oil private sector in the country grew for the seventh consecutive month during last June, albeit at a slightly lower pace than it was in the previous May, with the continuing impact of measures related to the Corona virus on corporate activity.

However, continued growth in new activity led companies to hire new workers last month, with hiring rising for the first time in five months and at a rate that was the fastest since January 2019, albeit slightly.

According to a statement issued yesterday, the seasonally adjusted index, which covers the manufacturing and services sectors, fell to 52.2 points in June from 52.3 points in May, recording its lowest level in four months.

The index indicated that there was little change in production growth due to the shortage of raw materials, while the growth of new purchase orders decreased, as export sales decreased in light of the cancellation of flights and other measures related to "Covid-19".

"Business conditions continued to improve only at a gradual pace in June, which adds evidence of a mixed initial recovery from (Covid-19) in the UAE non-oil sector," said David Owen, an economist at IHS Markit.

"Companies have often stated that the shortage of raw materials has undermined production growth, while new sales have been affected by travel restrictions," he added.

In addition, the expectations of future production among the participants in the index continued to improve, but gradually, as hopes for the recovery of tourism and the vaccination program were met with uncertainty surrounding the development of the pandemic.

• The continuous growth in new activities led to companies hiring new employees last month.

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