Dubai survey slips in November on less jobs
Dubai’s non-oil private sector economy growth eased slightly in November as job creation slowed to a three-month low, according to a survey. Growth, however, remained above the survey’s long-term average, boosted by an improvement in the fortunes of wholesale and retail companies.
The Emirates NBD Dubai Economy Tracker fell to 55.3 last month from 55.6 in October, but extended the current series of growth to 21 months. A reading above 50 suggests that the non-oil economy is growing, while a reading below 50 suggests a contraction.
The survey is sponsored by Emirates NBD, Dubai’s biggest bank by assets, and produced by IHS Markit, a financial information services company. “The November survey continues to show solid growth in Dubai’s economy last month, at a similar pace to the previous two months,” said Khatija Haque, head of Mena research at Emirates NBD.
Job creation remained positive for a ninth consecutive month, despite slowing to its lowest level for the past three months.
Demand for Dubai-produced goods and services, meanwhile, rose strongly in November, according to the survey. Purchasing managers polled expressed confidence about future growth prospects, expecting expansion in Dubai’s economy ahead of Expo2020.
Travel and tourism companies are the most bullish about the emirate’s economic outlook.
The wholesale and retail sub-index had the strongest reading in November at 57.5, followed by the whole economy at 55.3, construction at 54.5 and travel and tourism at 53.
Senior executives at about 600 private sector companies were polled for the survey. As a whole, the UAE’s nonoil economy had the biggest three-month gain in November, boosted by steep growth in output and new business.
The Emirates NBD UAE PMI rose to 57 last month from 55.9 in October, the sharpest pace of expansion since August.