#UAE News: #Dubai Business Conditions Improve as Coronavirus Cases Spike - Bloomberg

UAE News: Dubai Business Conditions Improve as Coronavirus Cases Spike - Bloomberg:

Business conditions in Dubai improved for the third straight month in September even as a renewed spike in coronavirus cases poses a threat to the city’s recovery.

Non-oil private sector activity in the Middle East’s business hub fared better amid a rise in activity and new business, according to IHS Markit. Its Purchasing Managers’ Index rose to 51.5 last month from 50.9 in August, remaining above the 50 mark that separates contraction from growth.

“The PMI has failed to lift off or signal any strong rebounds in output so far, with firms often initiating price cuts in order to drive sales higher,” said David Owen, economist at IHS Markit. “Meanwhile, employment data signaled a cautious outlook as firms often shed workers to manage cost pressures and enable discounting.”

In the United Arab Emirates, of which Dubai is a part, the recent surge in cases is raising the prospect that new restrictions may be needed to stop the contagion. The country’s central bank already anticipates that the OPEC member’s economy will shrink 5.2% this year, suffering a deeper contraction than first estimated.