https://arab.news/m8fa6
RIYADH: Dubai has recorded robust economic demand, secured new client acquisitions, and witnessed increased project work, all contributing to a surge in new order intakes midway through the final quarter, according to an economic tracker.
Despite a slight dip, Dubai’s Purchasing Managers’ Index maintained a positive trajectory, decreasing from 57.4 in October to 56.8 in November, according to S&P Global data.
The report highlighted that new business growth eased from October’s 52-month peak, leading to diminished confidence among non-oil companies regarding the activity outlook.
However, it pointed out that the decline indicated another upturn in the non-oil private sector, as the index has consistently stayed above the 50 mark every month since December 2020.
A reading above 50 signals expansion in the manufacturing sector, and despite the dip, Dubai's index continues to reflect growth.
While new order growth also stayed above trend, November data indicated a clear slowdown from October’s 52-month record.
After accelerating one month ago, sales momentum in all three of the key monitored sectors dropped to the weakest since August. Some firms attributed this decrease in momentum to increased market competition.
The tougher sales environment also took a heavy toll on business projections for the next 12 months, with the report indicating confidence falling sharply in November to the lowest since April.
Similarly, all three categories were less upbeat than in October, particularly wholesale and retail.
David Owen, senior economist at S&P Global Market Intelligence, said: “The Dubai PMI signaled that demand momentum had come off the accelerator pedal in November, as multiple non-oil sectors recorded a slowdown in new business growth. Softness in the demand environment contributed to a steep drop in year-ahead expectations, with firms indicating some concern about how they will perform as market competition toughens.”
He added: “That said, with these forward-looking survey metrics merely rowing back from multi-year highs in October, the latest data continues to put the non-oil sector in a positive overall position. Moreover, other metrics such as output and inventories remained strong compared to historical trends, suggesting that firms are still expecting to grow and hence expanded both input buying and output volumes.”