Dubai – Mubasher: Businesses in Dubai witnessed a renewed fall in activity in November 2020, as the impact of the coronavirus pandemic appeared to worsen amid rising cases around the world, according to the latest PMI data.
Growth in new work eased to the weakest seen in five months, leading to a solid drop in output.
In the meantime, sentiment regarding the next 12 months of activity fell to a new record low, amid increased worries about a slowing economic recovery. Nevertheless, job shedding eased to the weakest seen in the nine-month downturn.
The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index (PMI) recorded its lowest since May at 49.0 in November. Declining from 49.9 in October, the reading signalled a quicker, albeit marginal, decline in operating conditions.
At the sector level, demand weakness was most prominent in travel & tourism, and construction sectors.
"A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘double-dip’ economic downturn from the pandemic,” said Economist at IHS Markit, David Owen.
"However, news about effective vaccines could restore long-term optimism, as firms are likely to place greater hopes of a strong recovery in 2021,” added Owen.
