Dubai – Mubasher: Business conditions in Dubai’s non-oil private sector saw a significant improvement in September, although growth was slower compared to a month earlier, a new report showed.
The Dubai economy recorded 55.2 points in September, as compared to 56.3 in August; however, the index remained in line with the Emirates NBD Dubai Economy Tracker Index survey’s historical average, the report said.
The Emirates NBD Dubai Economy Tracker Index, a composite indicator designed to give an accurate overview of operating conditions in the Dubai's non-oil private sector economy, was released on Monday.
Business conditions improved on the back of output expansions and new business.The report indicated that the output rose at a sharp rate in September, especially in the construction sector, as strong underlying demand for goods and services had led to increased production.
“The rate at which employers hired additional staff was the fastest since April,” the report added, noting that the rate of job growth remained “only slight overall and below the long-run series average.”
Moreover, the latest data signalled growth of new business during the last 19 months, because of improving economic conditions and better marketing techniques, however; the rate of growth eased to a four-month low, but remained strong overall and in line with the survey average.
Input price inflation registered below the long-run series average of 53.6 in September, due to the rise in wages and the higher purchase prices.
The index showed a rise in the wholesale and retail sector performance to 58.1 in September from 56.3 in August.
On the other hand, the travel and tourism sector, and the construction sector registered 52.9 and 55.2 points in September compared to 55.1 and 55.8 points in August, respectively, bearing in mind that a reading of below 50.0 indicates the sector is declining; above 50.0, is generally expanding, and a reading of 50.0 signals no change.
“The September survey points to a continued solid expansion in Dubai’s economy, with retail & wholesale trade and construction data particularly encouraging,” said Khatija Haque, head of MENA research at Emirates NBD.
“Year to date, the Dubai Economy Tracker index has averaged 56.3, markedly higher than the average for the same period last year, which supports our view that Dubai’s GDP growth is likely to accelerate this year,” she added.
