Dubai- Mubasher: Dubai's private sector companies saw a positive begining to the third quarter of 2016, with overall business conditions improving at the fastest pace since March 2015, according to a statement produced by Markit.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index went up from 54.6 in June to 55.9 in July, reflecting a recovery in operating conditions for the fifth consecutive month since the series-record low seen in February.
“The improvement in the Dubai Economy Tracker index in July is consistent with the rise in the whole UAE Purchasing Managers Index last month, and is underpinned by stronger new work and output growth. The wholesale & retail sector in particular probably benefitted from holiday spending over Eid,” according to Dubai Economy Tracker, Khatija Haque, Head of MENA Research at Emirates NBD.
The best performing sub-sector was wholesale and retail, followed by travel and tourism and construction.
Wholesale and retail companies saw acceleration in growth since June, recording the strongest upturn in business activity in July, supported by steeper rises in the construction, and travel and tourism sectors.
The positive performance seen in July was backed by growth of incoming new business; the latest expansion of new orders received by private sector firms was the fastest since March 2015.
Input price inflation was softer than seen on average since the survey began in 2010, the survey highlighted, adding that the latest rise in overall cost burdens was the slowest for three months.
At the same time, average charges increased only fractionally, although this contrasted with a sustained period of price discounting earlier in 2016.
Higher average prices charged signalled a robust increase across the travel and tourism sector, while lower prices were reported by construction, and wholesale and retail companies in July.
