Non-Oil Businesses in Dubai Mark Strong Output; Job Growth Dampens – PMI

​Dubai is performing better than global average in economic trends for activity and demand despite a continued slowdown in the growth of the emirate's non-oil businesses in December. This is also true for inflation, as businesses saw a reduction in input costs, according to a new business survey.

At 55.2, the headline S&P Global Dubai Purchasing Managers' Index (PMI) remained firmly above the 50.0 nochange mark in December to indicate a strong improvement in operating conditions across the non-oil sector. The index improved slightly from 54.9 in November, but nonetheless was at its second-lowest since April.

Dubai’s output growth remained strong in non-oil economy, but slipped to weakest since February. The PMI survey signalled a robust expansion in output levels on the back of new order volumes and improving customer demand.

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"Growth in Dubai non-oil activity slipped to its softest rate for ten months in December, but nonetheless

remained robust and stronger than the average seen since the survey began in 2010," David Owen, Economist at S&P Global Market Intelligence, said.

New business growth also remained down, while job creation slipped to the weakest since September.

Sharp increases were seen in construction, wholesale & retail, and travel & tourism. New work received by construction firms rose at the strongest rate in nearly two years.

Firms were less upbeat about future activity levels in December, with positivity slipping to a four-month low.

Employment opportunities in December failed to rise due to weaker output forecasts. By sector, job growth was mainly driven by the construction and wholesale-and-retail categories, whereas staffing was broadly unchanged in travel and tourism.

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