Mubasher: October data showed an improvement in business conditions across Dubai’s private sector economy, backed by strong rises in output and incoming new work.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index reached 53.2 in October. However, the latest reading was down from 55.1 in September and pointed to the slowest growth momentum since April.
Travel & tourism was the best performing broad category in October (index at 54.8), followed by wholesale and retail (53.3). Meanwhile, construction companies saw a modest improvement in business conditions (index at 51.8), partly reflecting another subdued rise in new business intakes during October.
“The softer reading for the Dubai Economy Tracker in October is consistent with what we’ve seen at national level, and comes off a strong third quarter performance,” according to Khatija Haque, head of MENA Research at Emirates NBD.
“Although the headline indices are lower, output and new work growth remains strong and we remain comfortable with our forecast of 3.5% economic growth in Dubai this year,” Haque noted.
The rate of output growth was faster than the long-run survey average, but nonetheless eased since September to its weakest for six months.
Private sector companies in Dubai indicated that employment numbers were broadly unchanged during October.
Latest data showed a slowdown in new order growth to its weakest for six months, the statement said, adding that Dubai private sector companies are optimistic about their growth prospects for the year ahead.
