Dubai’s private sector managed to record a third consecutive month of growth and helped along by some new job creation as well.
Retail is proving to be the strongest category, while there were output gains for construction.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index eased to 55.3 in November from 55.6 in October. Yet, the “rate of growth remained above the series’ long-run average”. Despite this, the “lack of pricing power suggests that the environment for businesses remains challenging,” said Khatija Haque, Head of MENA Research at Emirates NBD.
As for job creation, there were gains for a ninth consecutive month.
Respondents commonly reported that they hired additional staff to meet rising output requirements. But the rate of employment growth did ease to the lowest level since August.
Business confidence towards future growth prospects was “strongly positive” in November, reflecting optimism towards developments surrounding Expo 2020 and an expected economic upturn. At the sector level, travel and tourism companies reported the most positive outlook.
On the flip side, November’s data indicated a further rise in average cost burdens faced by non-oil private sector companies. That said, the rate of increase did soften since the preceding survey and was “subdued in the context of historical data”.
Source: Gulf News