Business conditions in Dubai’s private sector improved at the slowest rate in three months, with moderate growth in the construction, travel and tourism and wholesale and retail sectors, according to new data from Emirates NBD’s seasonally adjusted Dubai Economy Tracker Index.
Of the three sectors, construction reported the sharpest growth followed by wholesale and retail and travel and tourism, although all three sectors posted softer growth in July than they did in June.
Business activity was found to have increased in July, although the rate of expansion slowed to a three month low.
According to Emirates NBD, many companies linked higher output to stronger inflows of new business.
Additionally, the data shows that many firms brought on additional staff in July, although the rate of growth remained weak when taken in a historical context.
The data also indicated that private sector businesses in Dubai had a sharp improvement in incoming new work in July, with many reporting that strong client demand and promotional activity.
Of the sectors examined, construction companies reported the strongest expansion in new order books.
Expectations for business activity were found to be largely optimistic, despite falling to a three-month low in July, with many companies hoping for new projects related to Expo 2020.
Lastly, input price inflation in the emirate’s private sector was found to have accelerated to a three-month high, while promotional activity led to the most significant fall in selling prices since January 2017.
“While firms reported higher output and new orders in July, this was on the back of extensive price discounting, with average selling prices falling at the sharpest rate since January 2017,” said Emirates NBD head of research Khatija Haque.
“Against this background, it is unsurprising that employment growth has so far this year has been the softest on record.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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