Dubai private sector companies indicated a sustained recovery in growth momentum in April from the survey-record low experienced in February.
At 52.7 in April, up slightly from 52.5 in March, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index highlighted the fastest improvement in overall business conditions since November 2015.
The headline index has now risen above the crucial 50.0 no-change value for two months in a row, but the latest reading was still weaker than the long-run survey average (55.1).
All three key sub-sectors monitored by the survey recorded an improvement in business conditions during April, led by wholesale and retail.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel and tourism, wholesale and retail and construction.
Khatija Haque, head of MENA Research at Emirates NBD, said: “The improvement in the Dubai Economy Tracker in April is encouraging, particularly as it reflects faster new orders and output growth. The latest survey confirms our view that Dubai’s economy is growing in 2016, albeit at a slower rate than last year.”
The survey showed that a robust and accelerated expansion of business activity underpinned the latest upturn in operating conditions across the Dubai private sector.
Moreover, the overall pace of output growth in April was the steepest since September 2015. A number of firms commented on stronger underlying client demand, alongside successful marketing and promotional strategies.
Despite a rebound in business activity, latest data signalled that job creation was relatively subdued across the private sector. The main exception was a solid rebound in employment growth among construction companies to its fastest for five months.
Dubai private sector companies said they are upbeat about their growth prospects for the year ahead. Travel and tourism was the most positive sub-sector monitored by the survey, followed by wholesale and retail.
However, latest data indicated that overall business confidence eased since March and remained weaker than the average seen in 2015.
The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
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