Output, new orders lift Dubai economy tracker in Oct.

The Emirates NBD Dubai Economy Tracker Index (DETI), an indicator of Dubai's non-oil economy, edged up in October to 55.6 from 55.2 in September driven by a strong growth in output and new orders.

Employment sub-index rose to 51.2 in October, although the overall rate of jobs growth remains modest.  Almost 96 percent of the firms surveyed indicated no change in their staff count last month, Emirates NBD said in the DETI survey report.

Businesses reduced selling prices on average in October, but to a smaller extent than in September.  Margins continued to remain under pressure as input costs increased at the fastest rate in more than two years, the report added. 

Firms cited “intense competition” as the main reason behind their inability to pass on rising input costs.  

“Despite the challenging operating environment, respondents were the most optimistic about the outlook for the next year than they have been since December 2016, citing upcoming new projects related to Expo 2020 and an expected upturn in general economic conditions,” the report said.

On a sector-level, the report said all sector indices rose in October. The strongest reading came from wholesale and retail trade sector (60.0), followed by construction (56.3) and travel and tourism (53.9). 

A reading of above 50.0 indicates that the non-oil private sector economy is generally expanding.