Cairo - Decypha: The Emirates NBD Dubai Economy Tracker Index registered at 56.2 for the month of February, down from January’s 23-month high of 57.1, according to a press release by Emirates NBD.
Wholesale and retail were the best performing category for the first time in six months with index recorded at 58.3. Travel and tourism followed closely with index at 57.0.
Construction companies recorded a slowdown in growth momentum during February, with the headline index down to 53.3, from 55.4 at the start of the year.
The Emirates NBD Dubai Economy Tracker Index is a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy. A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
“The February Dubai Economy Tracker survey continues to show robust expansion in Dubai’s non-oil private sector. Strong growth in output and new orders, which points to solid GDP growth in Q1 2017, is not being reflected in higher employment, however, and competition continues to weigh on selling prices,” said Khatija Haque, Head of MENA Research at Emirates NBD.
The overall improvement in the health of Dubai’s private sector reflected another sharp upturn in business activity in February. The rate of output growth was stronger than the long-run series average but eased from January’s 23-month high to its weakest in three months.
All three key sub-sectors noted sharp increases in activity during February, led by wholesale and retail. Anecdotal evidence generally linked higher business activity to stronger underlying demand conditions.
Dubai’s private sector employment was broadly unchanged in February, thereby ending a seven-month sequence of job creation.
New work received by private sector companies in Dubai continued to rise in February. Additionally, the latest increase quickened to the sharpest since February 2015.
Companies remained optimistic about their growth prospects for the year ahead. Travel and tourism firms were the most upbeat towards the 12-month outlook for activity, closely followed by wholesale and retail.
Wholesale and retail and construction companies continued to offer discounts, which was generally linked to intense competition and efforts to secure sales. In contrast, travel and tourism firms continued to raise their average selling prices.
The survey covers the Dubai non-oil private sector economy with additional sector data published for travel and tourism, wholesale, retail, and construction.
The Emirates NBD Dubai Economy Tracker™, produced by Markit, is based on data compiled from monthly replies to questionnaires sent to senior executives in approximately 600 private sector companies. Emirates NBD is a leading banking Group in the region with operations in the UAE, Egypt, the Kingdom of Saudi Arabia, Singapore, the United Kingdom and representative offices in India, China, and Indonesia.
