Dubai’s business growth experienced a robust June marked by an increase in new orders, contributing significantly to overall Dubai business growth. Job creation and other favorable indicators also played a role in driving Dubai’s business growth during this period. However, the momentum cooled off somewhat in July after hitting a 10-month high.
Dubai enterprises demonstrated another impressive performance in July, driven by fresh contractual agreements that fueled Dubai business growth and heightened productivity. This positive outcome was further bolstered by relatively subdued costs of raw materials and other supplies, which contributed to the business growth. These factors combined to fuel the optimism among business owners that their business growth prospects would continue to remain promising throughout the remaining months of the year.
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Dubai’s Business Growth Trends: From Robust Expansion to July’s Deceleration
Nevertheless, the July statistics fell short of the exceptional heights reached in June in terms of business growth. A degree of moderation was anticipated, with the key sectors – construction, wholesale and retail, and travel and tourism – reporting a slower pace of expansion in new business compared to the previous month, affecting Dubai’s business growth. This information is based on the latest data from the Purchasing Managers Index (PMI) by S&P Global. This deceleration also had an impact on hiring activities by companies, influencing Dubai’s business growth.
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Despite this, the overall sentiment remains positive regarding Dubai’s business growth. David Owen, Senior Economist at S&P Global Market Intelligence, remarked, A significant upswing in output was propelled by growth in new order intakes, effective marketing, and successful project acquisitions, contributing to Dubai’s business growth. Nearly one-third of businesses experienced expansion on a monthly basis, further underscoring business growth. Additionally, the latest data indicates increased confidence among firms about the future, ongoing improvement in supply conditions, and stable price pressures, supporting Dubai’s business growth.
Understanding the PMI Data:
The Purchasing Managers Index (PMI) for July registered at 55.7, a slight decline from June’s 10-month high of 56.9. However, this figure still signifies a robust improvement in operational conditions across Dubai’s non-oil economy, driving business growth. S&P Global’s analysis is based on metrics like business output, employment generation, and sentiments expressed by CEOs or business owners, reflecting Dubai’s business growth. A PMI reading above 50 indicates an expansion in business activity, contributing to Dubai’s business growth.
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