Friday, June 21, 2024

Non-oil private sector activity in Dubai eased in August


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Activity in Dubai’s non-oil private sector declined in August for the second month in a row due to a slowdown in activity growth.

The Purchasing Managers’ Index for the non-oil private sector in Dubai, released by S&P Global on Monday, fell to 55 in August from 55.7 in July.

The index hit its lowest level since February, but indicated an improvement above the neutral 50-point mark.

The economy of the Emirate of Dubai is a major component of the UAE’s gross domestic product, one of the largest oil producers and exporters, and it seeks to diversify its sources of income from energy.

Additional information
After the index surged to a 10-month high in June, the rate of improvement in business conditions slowed further in August as demand slowed and output was the slowest since the start of the year.

Despite reports of strong customer demand, increased tourism and ongoing price promotions, sales growth slowed slightly and was the weakest since March.

According to the report, a significant slowdown was recorded in August, especially among wholesale and retail firms, as construction activity continued to rise, but the decline in new business growth moderated the sector’s future expectations.

Job creation accelerated, the fastest rate in nearly eight years.

Firms sought to quickly build up their stocks of production inputs, resulting in a sharp build-up of stock levels over five months. However, this was reflected in a sharp decline in average delivery times.

Supplier prices for raw materials rose slightly in August
For rapid increase in total cost burden.

See also  Dubai: Real estate prices are rising as rents continue to fall

Average selling prices fell at a very weak pace over the 9 months, with companies reluctant to offer discounts on their products and services due to high costs.

As for future expectations, the level of confidence increased compared to July and recorded the second strongest rate in almost two years in August, as improving economic conditions, increasing tourism and adding jobs may support growth in activity next year. .

(Prepared by: Shaima Hefzi, contact: [email protected])

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Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

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