Business activity in Dubai’s private non-oil sector economy continues to improve in May
Trade activity in Dubai’s private non-oil sector economy continued to grow in May, with output rising for the sixth consecutive month, supported by the construction sector in the emirate.
The seasonally adjusted IHS Markit Dubai Purchasing Managers Index slipped to 51.6 in May from 53.5 in April. A reading above 50 indicates economic expansion while a lower reading indicates contraction.
The latest data points to a moderate improvement in business activity in Dubai’s non-oil private sector, after peaking at 17 months in April, as it nears the pre-pandemic growth path in the middle of its schedule. rapid massive inoculation of Covid-19.
Production rose, albeit at a slower pace, as companies surveyed said work on ongoing projects helped offset the slowdown in new commercial orders in May.
Construction was the only sector monitored to see a faster rise in output during the month. Activity in the industry picked up ahead of Expo 2020 in October, as developers scramble to complete their projects ahead of the six-month global fair which is expected to draw around 25 million visitors to the emirate.
The continued expansion of Dubai’s private non-oil sector economy comes as the emirate continues to push for a mass vaccination against the pandemic that has forced borders closed and lockdowns across the world throughout the year last. The UAE has carried out large-scale testing and its high vaccination rate has helped boost business confidence as its economy continues to rebound from the downturn caused by Covid-19.
The UAE has administered more than 13.4 million vaccines, enough to cover more than 62% of the country’s population, according to Bloomberg’s vaccine tracker. The government said on Tuesday that the UAE’s national immunization campaign had reached nearly 85% of the total eligible population.
Dubai, the business and tourism hub of the Middle East, has so far rolled out stimulus packages worth Dh7.1 billion ($ 1.93 billion) to support its economy and downplay impact of the pandemic on businesses and individuals. The emirate’s economy is expected to grow 4% in 2021, according to government projections released in December.
The latest PMI survey showed that input prices rose for the fourth consecutive month, but the headline inflation rate weakened to a marginal rate which led to “a further decline in production costs after the companies increased their prices for the first time in three years in April ”.