According to a survey released on Sunday, suggests that the Non-oil private sector of Dubai has expanded for a third successive month in September as it continued to see a decent improvement in the business conditions.
The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) rose from 50.9 in August to 51.5 in September.
Now, the nonoil private sector has emerged from the three months of compaction in June. In June, it settled at the 50.0 mark that represents no change.
The Coronavirus pandemic has hit hard the important economic sectors of Dubai, The Middle East Trade, and the tourism hub.
The private sector sees a rise
The report said, While the data was below the reading of July and importantly below the series average of 54.7, it indicated the greater increases in both the output and new business across the private sector in September.
David Owen, an economist at survey compiler IHS Markit said, “September PMI data finalized a third-quarter period of fair economic recovery in Dubai”
The output sub-index rose from 52.7 in August to 53.8 in September. It peaked at 56.1 in July this year.
Employment data is worth worrying
Further, Owen Said that on the negative side, the PMI has failed to lift off or show any strong rebounds in output so far, with firms often initiating price cuts to attract more sales. Meanwhile, employment data has signaled hesitant Outlook as firms often remove workers to manage cost pressures and providing discounts.
The United Arab Emirates, having more than 1,05,000 Coronavirus cases and 443 deaths, has reported an increase in the daily COVID 19 cases in the country in the last two months.
The business could grow more in the next six months
However, Business sentiments for the next six months improved slightly in the survey but the overall outlook was relatively submissive and hopes for further growth were hooked on higher sales as the relaxations are provided in the lockdown.
Owen said that the rise in the COVID 19 cases could lead to falling in the activity later this year. Thus, firms should be wise of expanding too much or too quickly.