Strong recovery in new orders and expansion in employment

S&P Global: Business conditions continued to improve in Dubai during November

The indicator pointed to an increase in commercial activity mainly.

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Non-oil-producing companies in Dubai witnessed continued improvement in business conditions last November, according to the Dubai Purchasing Managers' Index, affiliated to S&P Gluyal.

Despite the decline in the index in November 2022, by about 1.1 points to the level of 54.9 points, compared to 56.0 points in October, the index was indicative of a strong improvement in the conditions of the sector.

According to a statement issued yesterday, the index pointed to expansions in employment and inventory rates, as well as companies continuing to record a slight change in the costs of production inputs, and reduced their production prices, but to a lesser extent than in October.

He also pointed out that production levels continued to expand sharply in the middle of the last quarter of the year, despite the growth rate declining slightly from October.

The index showed an increase in commercial activity mainly due to the additional increase in new business, as some companies pointed to the progress made in the current contracts, and the positive impact of sporting events such as the FIFA World Cup.

Dubai companies reported a strong rebound in new business volumes in November, with many highlighting improved market conditions and new customers.

According to the index, overall increases in new orders and activity led Dubai companies to increase their stocks of production inputs, as stocks grew for the fourth month in a row.

Companies also increased their numbers of employees in November. After reaching a nearly three-year high in the previous study period, the rate of job growth slowed slightly, but was the strongest since the start of the pandemic.

Firms' confidence in future production was positive during the month of November, rising to an all time high, due to the strong outlook in the wholesale and retail category.

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