Dubai private sector businesses maintain growth momentum

Dubai / Emirates Business

Dubai private sector companies indicated a sustained recovery in growth momentum from the survey-record low experienced in February. At 52.7 in April, up slightly from 52.5 in March, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index highlighted the fastest improvement in overall business conditions since November 2015.
The headline index has now posted above the crucial 50.0 no-change value for two months in a row, but the latest reading was still weaker than the long-run survey average (55.1). All three key sub-sectors monitored by the survey recorded an improvement in business conditions during April, led by wholesale & retail.
The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.
Commenting on the Emirates NBD Dubai Economy Tracker, Khatija Haque, Head of MENA Research at Emirates NBD, said:
“The improvement in the Dubai Economy Tracker in April is encouraging, particularly as it reflects faster new orders and output growth. The latest survey confirms our view that Dubai’s economy is growing in 2016, albeit at a slower rate than last year.”
A robust and accelerated expansion of business activity underpinned the latest upturn in operating conditions across the Dubai private sector. Moreover, the overall pace of output growth in April was the steepest since September 2015. . A number of firms commented on stronger underlying client demand, alongside successful marketing and promotional
strategies.