Despite a slowdown in momentum from the previous month, Dubai’s non-oil economy continued to expand at a strong pace in September as business and news Despite a slowdown in momentum from the previous month, the Dubai’s non-oil economy continued to grow at a robust pace in September as business activity and business start-ups surged, according to a survey released on Tuesday.
The seasonally adjusted S&P Global Dubai Purchasing Managers’ Index (PMI) slipped from a three-month low of 56.2 in September, after hitting a 38-month high of 57.9 in August.
The survey, which covers travel and tourism in Dubai, wholesale and retail trade and construction, showed activity was driven by growth in wholesale and retail sales in September, which recorded a 38-month high. New business in travel and tourism also rose strongly, although the growth rate fell to the weakest since January, according to the report.
While production continued to grow strongly among construction companies, new orders rose only slightly, indicating a slowdown in sales pipelines.
“The slowdown came amid a further rise in input costs, after last month’s data signaled a record drop in prices due to lower energy and fuel spending,” said David Owen, economist at S&P Global Market Intelligence.
After a drop in energy costs led to lower business input prices in August, the latest data points to rising costs in September.
“Nevertheless, the pace of inflation was only marginal at best, providing further relief to businesses that had suffered steep cost increases earlier in the year,” Owen said.
The general slowdown in production and new business growth impacted employment levels at non-oil companies in September. The latest headcount increase was marginal and the smallest since June.
Expectations for future non-oil business activity picked up in September and remained in positive territory, but well below the series average.
(Writing by Brinda Darasha; editing by Seban Scaria)