Dubai-Mubasher: The non-oil private sector in Dubai saw a weaker performance in the third quarter of 2018, pressured by a contraction in employment and softer output growth. However, business conditions remained solid in September.
The seasonally adjusted Emirates NBD Dubai Economy Tracker slid to 54.4 in September, from 55.2 in August, according to a recent survey by the UAE-based lender. A reading above 50 indicates expansion, while a reading below that signals contraction.
The survey highlighted that travel and tourism sector was the worst performer in September, recording 51.3, followed by construction, and wholesale and retail sectors, registering 53.8 and 55.5, respectively.
The decline of the headline Dubai Economy Tracker (DET) Index in September signalled “the slowest rate of expansion since April. Both output and new work increased in September but at a slightly slower rate than in August," head of MENA Research at Emirates NBD Khatija Haque commented.
Employment dropped on average 49.2 in September, particularly in travel and tourism sector, she added.
Selling prices in Dubai’s private sector contracted for the fifth consecutive month in September, in spite of a modest rise in input costs, Haque said, noting “this suggests that firms increased promotional activity and discounts in order to boost demand.”
Stocks of pre-production inventories grew at the slowest rate since July 2016 last month, indicating that firms became less willing to hold inventories, according to the survey.
“Firms remain highly optimistic about future output, however, with many citing Expo 2020 projects and marketing initiatives as reasons for expected higher output in one year’s time,” it found.
