Dubai’s non-oil private sector saw robust growth in September compared with the previous month as strong sales boosted business optimism to the highest since 202, a survey showed on Tuesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) clocked in at 56.1 in September, up from 55 in August.
“The rate of growth accelerated for the first time in three months, driven by a much faster upturn in new business that was the sharpest recorded in over four years,” the report said.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.
Sector data pointed to faster upturns in travel & tourism, wholesale & retail and construction. The wholesale & retail category also saw rapid acceleration of growth from August.
“Dubai non-oil companies reported a rapid acceleration in sales growth during September, which climbed to the highest in over four years and was spurred on by new clients and strengthening economic conditions,” said David Owen, Senior Economist at S&P Global Market Intelligence.
The sharper rise in new orders supported the PMI. Panellists commented on improving demand conditions, greater sales efforts and the ability to provide more services to clients.
Inflation was the strongest in just over a year, with construction and wholesale & retail firms especially noting greater inflationary pressures.
“The pick-up in cost pressures also appeared to inhibit hiring and inventory growth, which could lead to some capacity constraints if demand continues to rise rapidly,” said Owen.
Job creation softened during the month to the mild and the weakest rate since February while the pace of inventory accumulation was only modest.
(Writing by Brinda Darasha; editing by Seban Scaria)
brinda.darasha@lseg.com
