Dubai’s private sector output continued to grow in September, according to the latest Dubai Economy Tracker. The overall rates of business activity and new orders growth were, however, softer than those seen on average through the first half of 2015.
The moderation in the business activity has prompted private sector companies to become more cautious in terms of their staff hiring in September. As a result, the emirate saw the slowest growth in employment numbers in three-and-a-half years.
The survey, sponsored by Emirates NBD and produced by Markit, looked at Dubai’s non-oil private sector economy with additional focus at the travel and tourism, wholesale and retail, and construction sectors to assess the business conditions in the Dubai non-oil private sector.
“The slight slowdown in the pace of expansion in Dubai’s non-oil economy is consistent with the slowdown across the UAE in September. Overall, the pace of activity remains robust, particularly in the construction sector. Travel and tourism remains the softest out of the three sectors surveyed, although optimism remains high, and we expect activity to recover as we head into Q4 2015,” says Tim Fox, Chief Economist at Emirates NBD.
Meanwhile, inflationary pressures continued to moderate, with input costs rising at the slowest pace since May and average prices charged remaining broadly unchanged over the month, the tracker notes.