https://arab.news/m5akd
RIYADH: Dubai’s non-oil private sector maintained its growth momentum in February, with the Emirate’s Purchasing Managers’ Index reaching 58.5 – the highest since May 2019. a survey showed.
According to the PMI report by S&P Global, the significant growth in Dubai’s private sector was driven by an increased volume of new orders. This surge prompted companies to hire people at the fastest rate in the last eight years.
In January, Dubai’s PMI stood at 56.6, compared to 57.7 in December and 56.8 in November.
According to S&P Global, any PMI reading above 50 indicates growth in the non-oil sector, while readings below 50 signal contraction.
David Owen, senior economist at S&P Global Market Intelligence, said: “The Dubai PMI climbed to 58.5 in February, which is its joint-strongest reading since 2015 – matching May 2019 – and suggests that the Dubai non-oil economy is growing rapidly so far this year.”
He added: “The reading signals that the Dubai non-oil sector is one of the fastest growing worldwide according to global PMI data.”
The survey revealed that 36 percent of the respondents saw their output increase since the previous poll period, signaling the fastest upturn in one-and-a-half years.
Firms cited a rise in demand, strong market conditions, and greater project work as reasons for higher output in February.
The report added that average output charges decreased at the fastest pace in eight months, with the most prominent reduction seen in the wholesale and retail sectors.
“Output and new order volumes are proving especially robust, with companies reporting new clients, higher demand and a still improving economy post-pandemic,” said Owen.
Similarly, after slipping to a five-month PMI low in January, the rate of new business growth accelerated midway into the first quarter, with sharper expansions recorded in all the key industries monitored by the survey.
Regarding the future outlook, Dubai non-oil companies had a more positive view compared to that seen in January, with around 19 percent of survey respondents expecting output to grow and the rest remaining neutral.
“Inflationary pressures remained soft which encouraged greater sales promotions, while employment and inventory growth strengthened. All this suggests that the non-oil sector’s expansion has further to run during 2024,” added Owen.