Dubai – Mubasher: The non-oil private sector in Dubai has seen the weakest growth since March 2016 in October amid a slowdown in business activity and employment.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index fell to 52.5 in October from 54.4 in September, according to a recent survey by the UAE-based bank.

The survey indicated that travel and tourism sector was the weakest performing sector in October at 49.6, followed by wholesale and retail at 53.7 and construction sector at 55.5.

“While still in expansion territory, the headline index points to the slowest rate of growth in the private sector in more than two and half years. The travel & tourism sector weighed on the overall index, as it contracted marginally last month,” head of MENA Research at Emirates NBD Khatija Haque commented.

Output across Dubai’s non-oil private sector grew at the slowest rate in October since December 2017 and the travel and tourism sector witnessed the weakest improvement during the latest survey period, the survey indicated.

Employment in the sector fell marginally last month at the same pace of the preceding survey as cost-cutting weigh on job shedding, it said.

Non-oil private sector businesses reported an increase in incoming new work during October for 32nd month in a row at the weakest growth rate in two-and-a-half years, it added.

Average cost burdens in the emirate’s non-oil private sector rose for the seventh month in October, while the inflation rate accelerated, marking a three-month high, according to the survey.

Output charges saw a modest decline in the latest survey as some firms attributed lower selling prices to promotional activity, the survey highlighted.

“Despite the soft survey data, firms in Dubai were the most optimistic than they have been since at least 2012, with nearly 77% of respondents expecting their output to be higher in a year’s time,” Haque said.