Job creation is on the rise for the month of April despite a slowdown in a key gauge of Dubai’s non-oil private sector.
The Emirates NBD Dubai Economy Tracker Index fell to 53.9 in April from 55.3 in March on the back of weaker performance by the wholesale and retail sector as well as travel and tourism in the emirate. A reading above 50 suggests expansion, while a reading below 50 indicates a contraction. The survey is sponsored by Emirates NBD, Dubai’s biggest bank by assets, and produced by IHS Markit, a financial information services company.
“The softer economy tracker index in April appears to reflect weaker inventory accumulation as well as slower output and new work growth,” said Khatija Haque, head of Middle East and North Africa research at Emirates NBD.
Those polled, reported a return of job creation in the emirate for the first time since January, the survey reported.
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Read More:
[ UAE non-oil economy grows in April as employment and output improves ]
[ Dubai economy tracker slips in February but remains positive ]
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The wholesale and retail sub index weakened to 53.5 in April from 56.3 in March, the travel and tourism sub index slipped to 55.3 from 56.7 for the same period.
While overall business activity growth in Dubai's non-oil sector increased at a slower rate in April and the pace of expansion fell below the historical series average, it remained solid nonetheless, according to the survey.
In terms of new business, the survey found that volume continued to rise at a strong pace last month. Purchasing managers at some of the companies linked the increase to promotional activity and robust demand.
Last week, Emirates NBD UAE's Purchasing Managers’ Index showed that private sector growth for the entire country improved in the same month on the back of enhanced output and employment growth.
The UAE's PMI Index rose to 55.1 in April from 54.8 in March, according to the index.
