Monday 14 December 2020

#Dubai's business conditions take a hit but job market stabilises - PMI | ZAWYA MENA Edition

Dubai's business conditions take a hit but job market stabilises - PMI | ZAWYA MENA Edition

Non-oil private sector businesses in Dubai saw a renewed fall in activity in November, as the impact of COVID-19 appeared to worsen amid rising global cases, according to the latest Purchasing Managers' Index (PMI) data from IHS Markit. However, job shedding eased to the weakest seen in the nine-month downturn, it said.

Growth in new work eased to the weakest seen in five months, leading to a solid reduction in output. Meanwhile, sentiment regarding the next 12 months of activity fell to a new record low, amid increased worries about a slowing economic recovery, according to the PMI survey that covers the non-oil private sector economy.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index posted at 49.0 in November, the lowest recorded since May. Falling from 49.9 in October, the reading signalled a quicker – but still marginal – decline in operating conditions.

"A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘doubledip’ economic downturn from the pandemic. COVID-19 cases have risen in the UAE and globally, leaving firms uncertain as to how restrictions may impact new business in the near future," David Owen, Economist at IHS Markit, said.

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