Dubai-Mubasher: Emirates NBD Dubai Economy Tracker Index showed that Dubai's private sector saw a softer growth at the end of 2015, registering 50.7 points in January, down from 51.8 in December, according to the bank’s report.
Although still above the 50.0 no-change mark, the latest reading - a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy - pointed to the weakest overall expansion since February 2010.
By sector, wholesale and retail was the best performer, with overall business conditions improving at a slightly faster pace than in December. However, construction companies saw a deterioration in operating conditions for the first time since this index began in March 2015.
The Dubai Economy Tracker survey shows the services sectors continuing to face challenging market conditions at the start of this year, while construction sector activity has also slowed sharp declines, said Khatija Haque, Head of MENA Research at Emirates NBD.
She added that weak external demand was evident in the main UAE Purchasing Managers Index survey for January, weighing particularly heavily on Dubai's open, export-oriented economy.
The private sector business activity increased at a modest pace in January, but the latest rise was the weakest for three months.
The construction firms experienced an outright fall in output levels, which some linked to delays to new projects amid weaker confidence among clients.
The report added that private sector firms remain positive about the 12-month business outlook, but the degree of confidence was up only slightly from December's survey-record low.
By sector, weaker optimism among construction, and travel and tourism firms contrasted with an upturn in growth expectations across the wholesale and retail sector.
