2023-06-09 04:27:03
*Details added
The performance of the non-oil private sector in the Emirate of Dubai slowed down last May, with the slowdown in new business growth and the decline in demand momentum.
The purchasing managers’ index for the non-oil private sector in Dubai, issued by S&P Global, decreased on Friday, in May, to record 55.3 points, compared to 56.4 points in April.
The economy of the Emirate of Dubai is an important component of the UAE’s gross domestic product, and it is one of the largest oil producers and exporters, which seeks to diversify its sources of income away from energy.
The index indicates an improvement in the performance of the non-oil-producing private sector, as it remained above the neutral level of 50 points.
“The headline index fell to a three-month low of 55.3 points,” David Owen, economist at S&P Global, said in the report, adding that this was affected by a slowdown in new business growth from April’s eight-month high.
Broad optimism
Input prices rose marginally in May, which encouraged companies to offer additional discounts on selling prices, according to the report.
Firms also expanded inventories of inputs in May, but at a slower pace than March and April.
During May, average delivery times shrank at a rapid pace, the most prominent since August 2019, with the improvement of supply chain conditions.
With companies seeking to rapidly expand output, job growth accelerated in May for the 13th consecutive month, and the pace of job creation was the fastest since the beginning of 2018.
Business confidence towards the coming year rose, posting the best production forecast in more than three years.
Businesses reported the highest degree of optimism since March 2020, before the first global lockdown due to COVID-19.
(Prepared by: Shaima Hefzy, contact zawya.arabic@lseg.com)
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