Dubai non-oil economy posts solid growth
dubai — Non-oil economy in Dubai eased further in March to 55.3, but still well above the neutral 50.0 level, indicating a solid expansion last month. According to Emirates NBD’s Dubai Economy Tracker Index, output and new order growth remained very strong, with these components at 59.5 and 59.8, respectively.
However, employment declined marginally for the first time since February last year, and selling prices fell at the fastest rate since last April, with firms indicating that selling prices had been cut to help stimulate demand. Input costs also eased marginally in March after the sharp VAT-related rise in January and further increase in February. Businesses were less optimistic about their prospects for the coming 12 months, with the expectations index declining to 69.9, the lowest reading since August last year. The Dubai Economy Tracker index averaged 55.7 in Q1 2018, indicating a similar rate of economic expansion to Q3 and Q4 2017.
Despite easing slightly in March, the rate of growth in the travel and tourism sector remained strong in March, with the overall sector index at 56.7
The wholesale and retail trade index eased slightly to 56.3 in March from 57.3 in February. Both output/ activity and new work increased strongly last month, albeit as a slightly slower rate than in February. As with the whole economy however, selling prices in the wholesale & retail trade sector declined in March, at the fastest rate since July 2017, which likely helped boost activity. Despite a strong start to year, growth momentum in the construction sector slowed in the first quarter of 2018. The average construction sector index reading was 54.1 in Q1 2018, down from 54.7 in Q4 2017, 55.3 in Q3 2017 and 57.2 in Q2 2017. The construction index reading for March was an uninspiring 53.2.
— waheedabbas@khaleejtimes.com