By Staff writer
Emirates NBD Dubai Economy Tracker shows strong expansion in new business for private sector firms
Private sector business in Dubai showed further growth in August, with the rate of business activity growth being the fastest seen since May.
Emirates NBD Dubai Economy Tracker's data signalled another increase in overall business activity across Dubai's private sector economy, which marked five-and-a-half years of continuous expansion.
The rebound in activity growth was underpinned by a stronger expansion in new business, which increased at the strongest rate in five months.
Despite stronger growth in activity and new orders, confidence towards the 12-month business outlook moderated for the second month in a row in August, while the rate of job creation was little-changed from July.
On the prices front, input cost inflation across Dubai's private sector strengthened to a six-month high, but selling prices declined slightly.
The index registered 57.6 in August, up from July's recent low of 53.1, and above the neutral 50.0 value for the 67th month in a row.
August data pointed to a sustained and strong upturn in Dubai private sector employment. The rate of growth was up only slightly from the previous month, however, and was slower than June's recent peak.
Tim Fox, chief economist at Emirates NBD, said: "The rise in business activity in August is encouraging, and suggests that at least some of the slowdown over the previous two months was due to Ramadan.
"Business optimism about future growth remains high, but has moderated since Q2, with the sharp decline in oil prices since June likely weighing on sentiment.
"Year-to-date, the Dubai Economy Tracker suggests that the pace of growth in Dubai has been robust, although somewhat slower than in 2014, with the output index averaging 59.1 in January through August, compared with 62.1 over the same period last year."
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.