A key gauge of the UAE's non-oil economy showed that the country's business conditions improved in July on the back of "sharp expansions" in output and new orders.
The latest Emirates NBD Dubai Economy Tracker rose to 56 in July from 55.8 in June, taking the measure to a three-month high as companies increased inventories and employment.
Emirates NBD sponsors the monthly survey of business conditions in the country’s non-oil private sector by IHS Markit, a financial information services company. A reading above 50 suggests that the non-oil economy is growing, while a reading below 50 suggests a contraction.
“The PMI survey in July showed that domestic demand remained robust, offsetting weakness in external demand last month," said Khatija Haque, Head of MENA Research at Emirates NBD.
"Firms were more optimistic about the coming year, and increased inventories at a record rate, partly in anticipation of further order growth.”
The report said that companies polled for the survey expressed optimism for the coming 12 month period. That confidence is based on orders in the pipeline and forecasts of a further improvement in demand.
Meanwhile, new export work fell for the second consecutive month in July, with the respective index dropping to a record low.
