New contracts and increased output helped Dubai’s businesses have a solid month in July. Supply costs remained “muted,” pointing to growth expectations for the remainder of the year.
Although July’s numbers were lower than June’s highs, the wholesale, retail, travel, and tourist industries all reported a slower increase in new business than in June. As a result, hiring was slower.
Dubai’s growth
The overall picture is still promising, with a notable increase in output being driven by increases in new order intakes, marketing success, and project wins.
Almost one-third of companies reported monthly growth. Businesses demonstrated a rise in future optimism, improving supply conditions, and steady price pressures.
- Dubai‘s July business performance solidified with new contracts, and increased output.
- Promising output growth due to new orders, marketing success, and project wins.
- June demand growth slows in the construction, retail, and travel sectors.
The PMI (Purchasing Managers Index) fell from June’s 10-month high of 56.9 to 55.7 in July. According to S&P Global, it did nonetheless demonstrate a significant improvement in business conditions across the non-oil economy. A value of more than 50 indicates increased business activity.
Despite rising to a 10-month high in June, demand growth slowed down, with weaker growth in new business reported in each of the three primary sectors tracked: construction, wholesale and retail, and travel and tourism.
In a similar vein, the rate of employment creation somewhat slowed and reached a 3-month low.
