The growth rate of Dubai's non-oil private sector activity slowed, with output increases and new orders slowing in November. The purchasing managers' index for the non-oil private sector, issued by Standard & Poor's Global in Dubai, declined today, Tuesday, for the third month in a row. It recorded 54.9 points in November, compared to 56 points in October.
According to the report, the index recorded the lowest level since April, but it still indicates a strong performance of the non-oil sector in Dubai, noting that production growth has witnessed a slight decline since October, and last November reached its lowest level in 9 months.
Although business activity picked up due to the additional increase in new business driven by the World Cup, the rate of growth in new orders in Dubai in November fell to the weakest level since February 2022.
The report attributed the slowdown in the growth of new orders in Dubai to competition, and said that the slowdown was noticeable in travel, tourism, wholesale and retail activities.
On the other hand, companies' inventories of production inputs rose, but it was the slowest increase in the series.
The companies faced a slight change in the prices of production inputs, as production costs increased marginally, driven by the increase in fuel prices, but on the other hand, the prices of raw materials from suppliers decreased.
The cut in raw material prices prompted companies to cut selling prices in an effort to attract customers, but it was the weakest rate of cut in the chain.
The rate of employment of companies in Dubai slowed down during the month of November, but it was one of the strongest rates since the beginning of the (Covid-19) pandemic, according to the report.
Business confidence in Dubai about the outlook for the future rose due to the strong outlook in the wholesale and retail sectors, but overall the level of general confidence remained much weaker than the long-term trend.
