Dubai’s non-oil private sector recorded a stronger improvement in operating conditions in June, driven by the increase in new business at the fastest rate in 10 months, supporting another notable rise in total output, according to the PMI.
Growth rates of production and new business remained well above the long-term average, employment numbers increased strongly, and firms continued to build inventories as supply chains improved further.
June data indicated another relatively modest rise in average prices of production inputs, which enabled companies to continue offering discounts by reducing the prices of goods and services.
The “Purchasing Managers’ Index” of “S&P Global” to monitor the movement of the economy in Dubai is an index derived from individual diffusion indices that measure changes in production, new orders, employment, supplier delivery times, and stocks of purchased goods.
The PMI study includes the non-oil private sector economy in Dubai, with additional sectoral data published for the travel and tourism, wholesale and retail, and construction sectors. After losing some momentum in May by declining to 55.3, the PMI rose to 56.9 in June. This indicates the strongest overall improvement in the conditions of the non-oil sector since August 2022. Moreover, the main indicator remained well above the long-term trend, recording 54.6 points, and the monthly rise of 1.6 points was the largest since October 2021.
The driver behind the renewed rise in June was the acceleration of the rate of increase in new business, as the rate of demand increased for the twenty-first consecutive month, and at the fastest pace since August 2022. The growth of new orders accelerated in each of the three main sectors under study, led by the tourism and entertainment sector. .
Total non-oil private sector business activity in Dubai rose for the 31st consecutive month, and the rate of expansion remained sharp although it has eased slightly since May. The three main sectors recorded similar remarkable rates of expansion in mid-2023.
Employment at non-oil private sector firms rose for the 14th consecutive month in June, the longest continuous period of job creation in more than six years. The growth rate has not changed much since May, remaining slightly above the long-term average. Employment was strong. Significantly in construction companies.
• Employment in non-oil private sector companies increased for the 14th month in a row.
2023-07-11 20:35:59
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