UAE - Mubasher: IHS Markit Dubai Purchasing Managers' Index (PMI) has increased to 51 in December from 49 in November, reflecting a return to expansion in Dubai's non-oil sector at the end of 2020.
The improvement in Dubai PMI, the first seen in three months, is attributed to a significant increase in the emirate's business activity in December, according to a press release on Monday.
Meanwhile, Dubai saw higher output in December, driven by higher sales which increased at the strongest rate since September.
However, employment rates continued to decrease amid a subdued outlook for the upcoming period, recording the tenth consecutive fall during December.
To attract more business by offering discounts, average prices declined for the thirty-second month in a row during the month.
The Economist at IHS Markit, David Owen, commented: "At 51.0, however, the index signalled only a slight expansion in Dubai's economy, as falling employment, lower stocks of purchases and shorter delivery times all acted as drags on the headline reading."
Owen added: "Businesses noted that the after-effects of the pandemic will continue to be felt across the non-oil sector, particularly as hiring remains weak and containment measures continue to stem export demand."
