A report issued by IHS Markit said that the non-oil private sector in Dubai continued to grow during the month of May, based on the latest data of the Purchasing Managers Index, although the growth rate slowed compared to the strong levels of April. Production and new business activity rose slightly, while employment activity declined.
The headline PMI is based on a number of individual criteria that measure changes in production, new orders, employment and inventories of goods purchased. The Dubai Non-Oil Private Sector Economy Survey covers data from the travel and tourism, wholesale and retail trade and construction sectors.
The index hit a 17-month high of 53.5 points in April, but fell to 51.6 points in May. However, that still indicated the second fastest improvement in operating conditions over 10 months.
The largest decline was recorded by the production and new orders indices, both of which fell by 3.8 points over the past month.
Output in the non-oil economy rose for the sixth consecutive month in May, but it was slower than in April.
Companies surveyed by IHS Markit indicated that work on ongoing projects had helped offset the slowdown in new order growth. The construction sector was the only sector that saw a faster rise in production during the month, as wholesale and retail trade saw slower growth and the travel and tourism sector recorded a renewed decline in its activities.