#Dubai non-oil sector returns to modest growth in December - PMI | Reuters

Dubai non-oil sector returns to modest growth in December - PMI | Reuters

Dubai’s non-oil sector returned to growth in December, but the expansion was modest as employment fell and sentiment for the new year was subdued, a survey showed on Monday.

The seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI) rose to 51 in December from 49 in November, rising above the 50-mark that separates growth from contraction for the first time since September.

“An increase in output and new orders led to a renewed improvement in the health of the Dubai non-oil sector in December,” said David Owen, economist at IHS Markit.

“At 51.0, however, the index signalled only a slight expansion in Dubai’s economy, as falling employment, lower stocks of purchases and shorter delivery times all acted as drags on the headline reading,” he said.

The Middle East tourism and business hub has been hit hard by the coronavirus crisis, with the emirate’s economy estimated to contract by 6.2% in 2020.