Output is strong and new orders increased as demand continued to grow at the start of the yearBusiness activity in Dubai's non-oil private sector economy grew at a robust pace in January, albeit at a slower rate compared with the previous month, as demand remained strong and new orders increased amid continued economic momentum. The seasonally adjusted S&P Global Dubai purchasing managers' index reading eased to 56.6 last month, down from its 16-month high of 57.7 in December and well above the neutral 50-point mark separating economic expansion from a contraction.  The index remained higher than the long-run average of the survey and indicated a sharp improvement in operating conditions in the emirate.“The Dubai PMI data remained very positive at the beginning of the year, with output levels rising strongly on the back of healthy demand conditions and respective increases in new orders and purchasing,” said David Owen, senior economist at S&P Global Market Intelligence.Businesses surveyed said the upturn was mainly driven by the further strengthening of new order volumes, although the pace of growth slipped to a five-month low in January. Stronger client demand and greater promotional activities drove new orders and output higher.  But businesses reported increasing competition in the market that weighed on the pace of sales growth last month, resulting in companies resorting to discounting, which is likely to squeeze profit margins.  “There are teething issues starting to appear. Competition is the main one, with surveyed businesses finding it increasingly difficult to drive sales growth as the market becomes crowded,” Mr Owen said.  Dubai, one of the main commercial, tourism and financial hubs in the Middle East, has maintained a robust growth momentum since bouncing back from the pandemic-driven slowdown. (ICE DUBAI)

Fonte notizia: www.thenationalnews.com/business/economy/2024/02/09/dubais-non-oil-economic-activity-remained-robust