UAE - Mubasher: The IHS Markit Dubai Purchasing Managers' Index (PMI) increased to 51.5 in September from 50.9 in August, reflecting an improvement in the performance of Dubai's non-oil private sector for the third month in a row.
In September, Dubai witnessed modest growth in its businesses amid the measures taken to recover from the coronavirus (COVID-19) economic impact, according to a press release on Sunday.
Although the emirate's economic activities rose at faster rates than in August, the PMI remained below that seen in July and down from the average of 54.7.
Meanwhile, the demand growth in Dubai has reached a ten-month high, driven by higher sales and the launch of new projects as the COVID-19 restrictions have been eased.
The wholesale & retail sector saw a surge in new orders during the last month, while the construction sector registered a modest upswing.
As for the travel and tourism sector, the businesses continued to decline, but at the slowest pace since February.
To increase their sales, firms have cut their prices during September and expanded their output levels for the fourth consecutive month.
As a result of the improvement in Dubai's non-oil sector, the decline in employment slowed to a moderate pace; however, companies continued to reduce the number of their staff to cut expenses
The Economist at IHS Markit, David Owen, commented: "Furthermore, the recent rise in COVID-19 cases across the UAE and the threat of reimposed restrictions could lead to a further dip in activity later this year. Firms will thus be wary of expanding too much or too quickly."
