Non-oil private sector business conditions in Dubai continued to strengthen for the third consecutive month in February, as output and employment numbers rose amid growing confidence among firms for a strong economic recovery in the current financial year (FY) 2021, according to the latest Purchasing Managers’ Index (PMI) data released on Tuesday.
The PMI, which is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery timeline and stocks of purchased goods, stood at 50.9 in February, a marginal improvement from 50.6 in January.
Across the three monitored sectors of travel and tourism, wholesale and retail and construction, output growth was strongest in construction, followed by wholesale and retail. But, the travel and tourism sector bucked the trend with a further decline in activities due to fresh restrictions on mobility, according to the IHS Markit survey report released on Tuesday.
David Owen, an economist at IHS Markit, said new business inflows dropped for the first time since last May in February but the overall fall in sales was only mild and has not deterred firms from increasing output and employment.
“The successful roll-out of Covid-19 vaccines in Dubai gave firms an increased optimism for growth in business activities over the coming 12 months," said Owen.
Copyright © 2021 Khaleej Times. All Rights Reserved.