DUBAI: Dubai private sector companies recorded the fastest improvement in overall business conditions last month since November 2015, indicating a sustained recovery in growth momentum from the lows experienced in February, according to new data. The seasonally adjusted Emirates NBD Dubai Economy Tracker Index reached 52.7 in April, up slightly from 52.5 in March. The headline index has now posted above the crucial 50.0 no-change value for two months in a row, but the latest reading was still weaker than the long-run survey average (55.1). All three key sub-sectors monitored by the survey recorded an improvement in business conditions during April, led by wholesale & retail.
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. A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction. Khatija Haque, head of Mena Research at Emirates NBD, said: “The improvement in the Dubai Economy Tracker in April is encouraging, particularly as it reflects faster new orders and output growth. The latest survey confirms our view that Dubai’s economy is growing in 2016, albeit at a slower rate than last year.”
