38057
Dubai Private Sector Growth Turns Negative
World Economy

Dubai Private Sector Growth Turns Negative

Private sector companies based in Dubai signaled the first deterioration in overall operating conditions in February since data collection began in 2010.
At 48.9, the headline seasonally adjusted Emirates National Bank of Dubai Economy Tracker Index was down from 50.7 at the start of 2016 and signaled a marginal deterioration in the health of the sector, Arabian Business reported.
Sub-sector data indicated that travel and tourism companies noted the fastest deterioration in business conditions. The health of the construction and wholesale and retail sectors also deteriorated, albeit at marginal rates.
A reading of below 50 indicates that the non-oil private sector economy is generally declining.
Khatija Haque, head of MENA Research at Emirates NBD, said: “The Emirates NBD Dubai Economy Tracker reading in February highlights the challenges faced by Dubai’s external-oriented service-based economy.
“Uncertainty about global economic growth, volatility in financial markets and low oil prices have weighed on sentiment and activity, while tourism and retail trade has also been affected by a strong US dollar.”
February data signaled a renewed decline in overall business activity across Dubai’s private sector. Though only modest, it was the first time that activity had fallen since January 2010.
All three key sub-sectors noted modest declines in activity during February, led by travel and tourism companies. Anecdotal evidence generally linked reduced business activity to weaker market conditions and fewer new orders.
The survey said Dubai private sector companies raised their workforce numbers only slightly in February, as has been the case in each of the past three months. A number of monitored businesses mentioned that staff hiring had been dampened by softer growth in new work.
Latest survey data also signaled a reduced amount of new business in Dubai’s private sector during February. Though only slight, it was the first time that new orders had declined in just over six years of data collection.
Companies that reported lower new business generally commented that an uncertain global economic outlook and falling oil prices had made clients more unwilling to commit to spending.
Despite a gloomier overall economic picture, Dubai private sector firms expressed an improved level of optimism towards the one-year business outlook in February. That said, the overall degree of positive sentiment remained weak in the context of historical data.
At the sub-sector level, business confidence improved across travel and tourism, and wholesale and retail.

Short URL : http://goo.gl/BF36wz
  1. http://goo.gl/JEQzNX
  • http://goo.gl/lGdl8T
  • http://goo.gl/nJkLnA
  • http://goo.gl/HXN016
  • http://goo.gl/ZI34jL

You can also read ...

Najib Says Malaysia Reserves at $100 Billion
Malaysia’s international reserves, which amount to more than $...
Pakistan Economy Teetering as Pleas for Remedy Mount
Pakistan is showing clear signs of economic meltdown amid...
For the full year 2017, GDP growth may be slightly higher than the 1.4% estimated in the previous bulletin, the Bank of Italy said.
Fitch Ratings has affirmed Italy's sovereign rating at 'BBB'...
If NAFTA is scrapped, some economists predict that the big automakers would just shift production altogether to Europe or Asia.
America’s federal government finished fiscal 2017 with a...
Japan Faces Huge Challenges
Is Japan’s problem-plagued economy finally turning a corner?...
GE is maker of power plants, jet engines, medical devices and other  industrial equipment.
General Electric Co’s new chief executive vowed to shed more...
Fed Chair Race Heats Up
President Donald Trump said he’s considering Stanford...
Chinese stocks have steadily moved upward since June.
Investor confidence in China’s securities market remains...

Trending

Googleplus