The private sector in Dubai soared to the highest level in 18 months as the PMI survey showed a strong expansion in the non-oil private sector economy in Dubai and an acceleration in recovery during the month of April, and sales growth reached the fastest level since October 2019, supported by rising business confidence, with The emirate continues to vaccinate “Covid 19” vaccines at a rapid pace, and work conditions have been strengthened through remarkable increases in production and new business.
The IE index rose. H. S Market Purchasing Managers in Dubai, revised yesterday to 53.5 in April from 51 in March, to record the highest reading since November 2019, in a strong indication that the emirate’s economy is close to its pace of growth before the pandemic.
The data showed that travel and tourism were the main driver of the recovery in April. The outlook for business activity for the next 12 months improved significantly in April. Positive sentiment rose to its highest level since March 2020, as companies showed growing optimism that the impact of the pandemic would subside over the next year.
The most positive result in the survey is the New Orders Index, which indicated the fastest rise in customer sales for a year and a half. The rally helped boost business optimism for the coming year as the impact of the pandemic is expected to recede.
The survey results represent the first rise in new business this year, and the strongest growth rate since the end of 2019. Faster increases in new business were also recorded in the wholesale, retail and construction industries.
Non-oil private sector companies increased their production for the fifth consecutive month in April, with the rate of expansion accelerating to its highest level since July 2020. There was also a third increase in the number of employees in four months.
Input demand rose strongly at the start of the second quarter, input price inflation declined significantly, and companies raised excise duties in April, marking the first monthly increase in three years.
David Owen, an economist at IE, said. H. S-Market: “Tourism and travel companies recorded a noticeable rebound in performance, amid increasing hopes for an increase in tourism activity during the current year, supported by the rapid spread of the vaccine,
New business rose at the strongest rate since the end of 2019, as demand strengthened, and non-oil companies ended the last round of production tariffs lower in April, as prices were raised for the first time in three years. And the decline in cost inflation, starting from March, indicates a slight improvement in operating margins after a long period of price decline. ”
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