Tuesday 10 March 2020

Slowing business hits #Dubai firms as coronavirus fears intensify | ZAWYA MENA Edition

Slowing business hits Dubai firms as coronavirus fears intensify | ZAWYA MENA Edition:

Companies in Dubai are feeling the economic impact due to coronavirus outbreak, while business confidence has fallen to the lowest level in more than two years, a new survey revealed.

According to IHS Markit, which tracks business conditions in the non-oil private sector, firms have been hit by weaker sales and client demand, with the travel, tourism and construction industries not faring well.

Several companies are facing increasing business challenges including replenishing stocks which has become difficult due to delays on imports from China.

Overall, the seasonally adjusted Dubai Purchasing Managers’ Index (PMI) dropped to a four-year low of 5.0 in February, from 50.6 in January.

“The headline PMI was held back by weaker sales and lower inventories at Dubai firms… Construction fared the worst of the monitored categories, recording a moderate decline in business conditions, while the travel and tourism sector stalled,” IHS Market said in its latest report.

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