Output and business activity increased at the fastest rate since early 2015, as firms offered discounts and promotions to support demand
Emiratesnbd Bank reports that its headline Dubai Economy Tracker Index (DET) rose to 57.6 in May - up from 53.9 in April. This is the best improvement in business conditions in over a year, as per the tracker.
However, margins continue to be squeezed as firms’ input costs continued to rise even as average output prices declined last month.
The selling price index has declined to 48.4 in May from the level of 50.2 in April.
As a result of the pressure to keep costs contained, employment was broadly unchanged despite the steep acceleration in both new work and business activity.
Firms built up inventories at the fastest rate since January, and business optimism was the highest on record in May.
Recent government announcements on regulatory reform to support investment and growth, and public sector bonuses likely helped to improve sentiment in the private sector.
The key sector surveys show the wholesale & retail trade and travel & tourism sectors contributing the most to the overall improvement in business conditions in Dubai.
The construction sector index increased slightly as well, showing a solid rate of expansion in that sector.
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