David Owen, an economist with the IHS Markit stated that “Post the powerful expansion quarter for the Dubai’s Non-Oil Economy, the October figures has drawn up more subdued image as the overall business conditions were left widely stabilized.”
The Seasonally adjusted IHS Markit Purchasing Managers’ Index slumped down to 49.9 in October, from 51.5 point reading recorded during September. A reading of 50 and above, depicts the business expansion or stability. The latest data or information sharing depicts a cease to a consistent three-month long run of economic development.
Conditions within the UAEs heartland Dubai’s Non-Oil private arena economy remains widely unaffected within October with only a mild surge within the latest work amidst a global second wave of COVID-19 related infection rate.
The Non-Oil private arena economy of Dubai, the commercial as well as exchange hub of the Middle Eastern territory, has expanded via the third quarter as the Emirate detached most curbing put in place former this year for curbing the virus spread. However, a second wave of Covid-19, disturbing the parts of Europe, Americas, Asia and the Middle East, has diminished the economic outlook, with some chief European economies touching back into lockdown.
Mr. Owen further stated that “the output levels have deteriorated within the construction as well as travel and tourism sector, all due to the lack up of latest building projects, as well as weaker tourist statistics. The overall expansion within the wholesale as well as retail arena was the easiest within the earlier five months.”
Dubai has divulged numerous measures over the former few months to support its economy and trades recover. Preceding month, the emirates tossed another economic stimulus package worth Dh500 million, bringing the over-all value of stimulus provided this financial year to Dh6.8 billion.
Few of the businesses surveyed stated passive market conditions prevented further expansion. Covid-19 infections globally have overlapped the 50 million mark with the death toll attaining 1.26 million as of Monday, according to tracking data from Worldometer.
Job numbers also slumped down in October, gathering pace from September, but the deterioration was still only the second-weakest in the previous eight months. Firms linked a drop in employment all due to cost-cutting measures.
On the price front, the newest data signaled a largely unchanged level of expenses suffered at the flinch of the fourth quarter. The survey found that “firms still expect a upsurge in movement in the approaching 12 months, but the degree of positivity was only fractional.”