The latest business data survey sponsored by Emirates NBD pointed to accelerated expansion in Dubai’s private sector output in August while the rate of business activity growth was the fastest seen since May.
The survey, conducted by Markit, also showed a strong expansion in new business, which increased at the strongest rate in five months.
“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,” Tim Fox, chief economist at
Emirates NBD, said.
Despite the increase in activity, the 12-month business outlook was moderate for the second month in a row, while the rate of job creation was little-changed from July.
“Business optimism about future
growth remains high, but has moderated since the Q2, with the sharp decline in oil prices since
June likely weighing on sentiment,” Fox said. “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.”
Input cost inflation across Dubai’s private sector strengthened to a six-month high, but selling prices declined slightly.
