Dubai’s private sector sales jumped, after a noticeable increase in commercial activity, according to the Purchasing Managers’ Index (PMI), of the IHS Markit group.
The Purchasing Managers’ Index showed that the growth rate of sales of private sector companies in Dubai rose to its highest level in 28 months, led by the travel and tourism sector at the level of sectors.
The wholesale and retail sector witnessed an increase, while the construction industry suffered from weak demand and constraints on the supply side.
Dubai’s private sector
The latest index data indicated a noticeable increase in commercial activity in the non-oil private sector in Dubai during November.
The main reason behind this recovery was the increase in new business at the strongest rate since July 2019. Companies have benefited from the continued recovery in international travel and higher customer demand.
Lower production prices also helped boost sales, which was the fastest in over a year.
“The Expo 2020 continued to bring strong growth to the Dubai non-oil economy in its second month, with the November PMI remaining at its joint-highest level since October 2019, whilst new business growth picked up to the fastest for more than two years. Travel and tourism appeared to benefit the most of the three monitored sectors, with wholesale and retail also firmly in growth territory,” said David Owen, economist at IHS Markit.
Expectations of future activity were weak compared to pre-corona trends, although it recorded one of the highest levels in 2021.
Some companies remain unstable due to the pandemic, and there were doubts about the strength of the recovery after the support provided by the Expo 2020 exhibition faded.
Therefore, future PMI releases will be crucial in understanding the strength of the economy, and whether this can drive business and employment confidence.
After climbing to a two-year high in October, the seasonally adjusted Dubai PMI stopped moving at 54.5 in November.