The Purchasing Managers’ Index (PMI) in Dubai declined last May, after rising for three consecutive months, affected by the slowdown in the production expansion in the non-oil private sector at the lowest pace in six months, as well as the slowdown in the growth of new orders.
The results of the Purchasing Managers’ Index of the “IHS Markit” group showed that the production of the non-oil economy in Dubai rose during May for the sixth month in a row, but the growth rate slowed to the weakest pace during this period, but the companies included in the study indicated that the Ongoing projects have helped offset the slowdown in the growth of new orders.The PMI fell from 53.5 in April to 51.6 in May, however, the index still points to the second-fastest improvement in operating conditions in 10 months.
The most important results of the PMI study
The only construction sector saw a faster rise in production in May, while the wholesale and retail sectors experienced slower expansion.
The activity of the travel and tourism sector fell again, and was the weakest among the sectors, and new business in it fell for the fourth time in five months.
Weak production growth and new orders led companies to cut hiring levels for the second time in 3 months.
Supplier performance deteriorated for the fourth consecutive month in May.
David Owen, an economist at IHS Markit Group, said that the decline in the PMI in May came after 3 months of consecutive rise, indicating a more modest improvement in non-oil business conditions, as both production and new orders rose at weaker rates, Although the April data was the strongest since late 2019.”The slowdown caused companies to reduce workforce numbers in May, but the overall rate of job losses was marginal,” he added.