Employee numbers increase in May for the 13th consecutive month
Dubai's private sector records strongest business confidence in 3 years
The PMI showed that Dubai saw a rise in new business flows last month. Archival
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Dubai's non-oil private sector companies recorded further improvement in operating conditions in May, as growth remained robust despite a slight decline compared to April, according to S&P Global's purchasing managers' index.
Companies showed stronger confidence in the next 12 months, recording the best production forecasts in more than three years, and provided the highest degree of optimism since March 2020, before the first global lockdown due to the Corona pandemic.
Production and employment increased stronger, while demand momentum eased and supply chain pressures eased further.
The index came in at 55.3 points in May, indicating an overall sharp improvement in business conditions during the month, after the main index reached an eight-month high of 56.4 points in April.
Factors affecting the index included a slight increase in new business flows and further reduced delivery times.
Companies saw a significant and faster expansion in activity levels in May, accelerating the growth rate for the fifth consecutive month and was the strongest since August 2022. Most of the companies surveyed linked the increase in activity to another sharp rise in new business, supported by ongoing marketing efforts and work on ongoing projects.
Strong growth and improved outlook led to a particularly strong performance in the labor market in May, with employee numbers rising for the 13th consecutive month, and the pace of job creation being the fastest since the start of 2018.
David Owen, economist at market research firm S&P Global, said: "The improvement in conditions for Dubai's non-oil economy continued at a strong pace in May, and companies saw a significant acceleration in the growth rate of activity, which rebounded for the fifth consecutive month last month."
"As companies sought to expand production, job numbers soared, and growth accelerated to its highest rate since January 2018."
The growth rate accelerated in May for the fifth consecutive month.