Worst May Be Over for Biggest Arab Economies as Businesses Adapt - Bloomberg

Worst May Be Over for Biggest Arab Economies as Businesses Adapt - Bloomberg:

Business conditions in the Arab world’s three largest economies deteriorated at a slower pace in May as governments began to lift some lockdown restrictions while companies adjusted by slimming down staff and cutting salaries.

Following a pandemic-driven plunge, non-oil private sector activity improved in Saudi Arabia, Egypt and the United Arab Emirates, according to Purchasing Managers’ Index surveys compiled by IHS Markit. The gauge in each country still remained below the threshold of 50 that separates growth from contraction.

• Saudi Arabia’s PMI rose to 48.1 in May from 44.4 a month earlier, thanks to slower declines in output, new work and employment, according to IHS Markit
• The Egypt PMI rose to 40.7 from a record low 29.7 in April, bringing its stretch of declining conditions to the 10th consecutive month; employment and salary cuts resulted in the first drop in cost pressures in the series’ history
• IHS Markit’s gauge for the UAE reached 46.7 in May from a record low of 44.1 in April; sentiment slipped to joint-lowest on record