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September 8, 2016 | 10:15 | Dubai
August data signalled a further strong upturn in business activity across the Dubai private sector economy, with the latest improvement only slightly less marked than the 16-month peak seen in July. At 55.7 in August, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index was down fractionally from 55.9 in July but above the 50.0 no-change threshold for the sixth successive month. Moreover, the headline index – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy – is on track for its highest average reading for any quarter since the start of 2015.
All three key sub-sectors monitored by the survey experienced improving business conditions in August, albeit at a slightly slower pace than in the previous month. Wholesale & retail remained the best performing (index at 55.5), followed by travel & tourism (54.7) and construction (52.6). Survey respondents mainly pointed to strong sales growth in August, supported by improving economic conditions and successful discounting strategies to stimulate client demand. The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.
– Robust upturn in business activity and incoming new work
– Business expectations rebound from July’s six-month low
– Price discounting continues in August, despite sustained rise in input costs