The UAE’s non-oil-producing private sector witnessed a strong improvement at the beginning of the second quarter, as the PMI rose to its highest level since mid-2019, supported by a strong rise in new business volumes and a sharp expansion in production, which was linked to the continued economic recovery from “Covid 19”.
The index rose from 52.6 in March to 52.7 in April, reaching its highest level since July 2019, and its highest level in 21 months.
The largest contributor to the main PMI is the New Orders Index, which in April rose to a 20-month high, and indicated a sharp increase in new business flows.
The companies surveyed and which witnessed a recovery reported that market conditions have generally improved due to the publication of “Covid 19” vaccines and improved corporate confidence. The companies also witnessed a rise in new export orders, although the recovery was less than what the total sales witnessed, indicating that the growth in demand was local. Basically.
Production witnessed a sharp expansion in April, as companies sought to complete ongoing projects. Purchases of production inputs increased at the fastest pace in 9 months during April, which contributed to the fifth consecutive increase in stock holdings.
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