Emirates NBD Dubai Economy Tracker signals further improvement in business conditions in October

Emirates NBD Dubai Economy Tracker has shown that October data signalled a further improvement in business conditions across Dubai’s private sector economy, underpinned by strong rises in output and incoming new work.

At 53.2 in October, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index registered above the crucial 50.0 no-change value for the eighth month running. However, the latest reading was down from 55.1 in September and pointed to the slowest growth momentum since April.

Travel and tourism remained the best performing broad category in October (index at 54.8), followed by wholesale and retail (53.3). Meanwhile, construction companies recorded only a modest improvement in business conditions (index at 51.8), partly reflecting another subdued rise in new business intakes during October.

The headline Emirates NBD Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.

A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.

The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel and tourism, wholesale and retail, and construction.

Commenting on the Emirates NBD Dubai Economy Tracker, Khatija Haque, Head of MENA Research at Emirates NBD, said, "The softer reading for the Dubai Economy Tracker in October is consistent with what we’ve seen at national level, and comes off a strong third quarter performance. Although the headline indices are lower, output and new work growth remains strong and we remain comfortable with our forecast of 3.5% economic growth in Dubai this year."