Dubai’s non-oil private sector records modest expansion

IHS Markit Dubai Economy Tracker Index records 55.2 in July versus 58.4 in June
Employment numbers remained largely unchanged compared to June
Expectations for business activity over the next 12 months were high at the start of H2 2019

Business activity in Dubai’s non-oil private sector expanded in July albeit at a slower pace, according to the Dubai Economy Tracker Index (DET) developed by London-based global information provider, IHS Markit. The seasonally adjusted IHS Markit Dubai Economy Tracker Index fell from 58.4 in June to 55.2 in July. Readings above 50 signal growth in economic activity.

The index is based on data collected through a monthly survey of business conditions in the Dubai’s non-oil private sector. The survey covers the non-oil private sector economy, with additional sector data for travel and tourism, retail and wholesale, and construction.

“Business activity in Dubai’s non-oil private sector economy continued to expand in July. That said, the rate of growth slowed since June, to the weakest since February,” the DET report said.

Data showed that activity expanded despite employment numbers remaining largely unchanged compared to June. Employment during the latest month continued the trend of subdued labour market conditions witnessed during the year so far. Job creation in the retail and wholesale sector was offset by job cuts in the travel and tourism, and construction sectors.

Expectations for business activity over the next 12 months were high at the start of H2 2019, with the respective index registering the third-highest numbers on record.

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