Dubai – Mubasher: Dubai’s non-oil private sector economy witnessed a faster growth in March, encouraged by sharp new work and total business activity (output), which increased at the fastest rate since January 2011, according to a report compiled by IHS Markit for Emirates NBD.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index advanced to 57.6 in March, the highest since May 2018, from 55.8 in February, according to the report released on Tuesday. A reading above 50 indicates expansion, while a reading below that signals contraction.

The report highlighted that both travel and tourism, and wholesale and retail sectors have seen improved business conditions in the third months of 2019. Meanwhile, business conditions at construction firms were the softest in 28 months (51.8), as weaker new order growth took its toll on the sector index. 

“While the rebound in the headline Dubai Economy Tracker Index is encouraging, it is clear that firms continue to price discount in order to secure new work and boost activity. The pressure to cut costs means that the recovery in the volume of activity has not translated into much job growth in the private sector,” Khatija Haque, head of MENA Research at Emirates NBD, said.

Inflows of new business in the GCC emirate’s non-oil private sector firms rose in March, registering the fastest expansion since May 2018.

Although the rate of job creation was modest last month, workforces were expanded to support activity levels, the report found, adding that this partly reflected broadly no change in staffing in the travel and tourism sector.

“Average input prices rose for the twelfth month running in March. That said, the rate of inflation was modest and eased since February. Cost pressures were strongest in the travel & tourism sector,” the report said.