Dubai Economy Tracker broadly stable in July

The Emirates NBD Dubai Economy Tracker Index (DETI) was broadly unchanged in July at 56.3, still signaling robust expansion in the non-oil private sector.  Output (61.0) and new orders (62.0) increased sharply in July, although the output index was slightly lower than in June.  Firms attributed the rise in business activity to “favourable economic conditions and more projects”. 

Employment growth was marginal however, despite the strong rise in output and new work.  Market conditions remained competitive and firms reduced selling prices on average in July, although the decline was marginal with the output price index only a touch below the neutral 50.0 level at 49.6.  Nevertheless, the inability of firms to pass on rising input costs to consumers is likely a key factor behind sluggish employment growth. 

Stocks of purchases (inventories) rose at a solid pace in July, although the index was down from June.  Firms remained optimistic overall about the prospects for order growth over the coming twelve months

Other highlights:

• Wholesale & retail trade index slightly lower than June
• Travel & tourism sector index rises in July
• Construction sector saw slower expansion in July

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