Dubai – Mubasher: Dubai’s non-oil private sector economy remained strong in February, with a similar rate of January, according to a report compiled by IHS Markit for Emirates NBD PJSC.

The seasonally adjusted Emirates NBD Dubai Economy Tracker was unchanged from January’s seven-month high of 55.8 in the second month of 2019. A reading above 50 indicates expansion, while a reading below that signals contraction.

Total business activity hit the highest level in nine months, while new business levelled up at a pace that remained above the 2018 average despite easing since January, the report added on Monday.

“The growth in the volume of output and new work has been underpinned by continued price discounting, particularly in the wholesale and retail trade sector,” Khatija Haque, head of MENA Research at Emirates NBD, said.

The GCC emirate’s employment fell at the fastest rate since the survey began in 2010, the report added.

“Companies in the wholesale and retail sector reported the firmest volume growth in February, although with greater price discounting than in January,” it highlighted.

The headline index for the sector rose to 58.1, above the comparable figure for the travel and tourism sector that recorded 56.8.

“Firms’ margins continue to be squeezed as selling prices have declined on average for the last 10 months, while input costs have increased over the same period. As a result, rising new orders have not translated into increased hiring and job growth in the private sector. Indeed, employment declined at the fastest rate on record in February,” Haque noted.

The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel and tourism; wholesale and retail, and construction.