Arab News, Tue, Mar 12, 2024 | Ramadan 2, 1445
Dubai’s non-oil private sector hits fastest growth since May 2019 with PMI at 58.5
Emirates:
Dubai’s non-oil private sector maintained its growth momentum in February, with
the Emirate’s Purchasing Managers’ Index reaching 58.5 – the highest since May
2019. a survey showed.
According to the PMI report by S&P Global, the
significant growth in Dubai’s private sector was driven by an increased volume
of new orders. This surge prompted companies to hire people at the fastest rate
in the last eight years.
In January, Dubai’s PMI stood at 56.6, compared to
57.7 in December and 56.8 in November.
According to S&P Global, any PMI reading above 50
indicates growth in the non-oil sector, while readings below 50 signal
contraction.
David Owen, senior economist at S&P Global Market
Intelligence, said: “The Dubai PMI climbed to 58.5 in February, which is its
joint-strongest reading since 2015 – matching May 2019 – and suggests that the
Dubai non-oil economy is growing rapidly so far this year.”
He added: “The reading signals that the Dubai
non-oil sector is one of the fastest growing worldwide according to global PMI
data.”
The survey revealed that 36 percent of the
respondents saw their output increase since the previous poll period, signaling
the fastest upturn in one-and-a-half years.
Firms cited a rise in demand, strong market
conditions, and greater project work as reasons for higher output in February.
The report added that average output charges
decreased at the fastest pace in eight months, with the most prominent reduction
seen in the wholesale and retail sectors.
“Output and new order volumes are proving
especially robust, with companies reporting new clients, higher demand and a
still improving economy post-pandemic,” said Owen.
Similarly, after slipping to a five-month PMI low
in January, the rate of new business growth accelerated midway into the first
quarter, with sharper expansions recorded in all the key industries monitored by
the survey.
Regarding the future outlook, Dubai non-oil
companies had a more positive view compared to that seen in January, with around
19 percent of survey respondents expecting output to grow and the rest remaining
neutral.
“Inflationary pressures remained soft which
encouraged greater sales promotions, while employment and inventory growth
strengthened. All this suggests that the non-oil sector’s expansion has further
to run during 2024,” added Owen.