Dubai: Dubai businesses ended 2021 on a positive note, with data for December showing a “rapid increase” in new orders and solid gains for the tourism sector. New orders hit their highest level in 29 months, with the private sector seeing more boosters coming out of the Expo and related initiatives.
In fact, new orders in December were again in line with pre-COVID-19 trends, while another key metric – business output – was also found to be strong, “at the second fastest pace since mid -2019 “, according to the latest IHS. Markit’s results on UAE Purchasing Managers Index (PMI) figures.
More signs of job creation
Private companies in Dubai have also made “more effort” to increase their workforce. “The expansion has been modest but nonetheless one of the strongest on record since the start of the pandemic.” The report finds. “In contrast, the amount of inputs purchased by non-oil companies remained unchanged, ending a five-month growth streak and causing inventory levels to drop slightly.”
The seasonally adjusted IHS Markit Dubai PMI hit its highest level in two and a half years in December. At 55.3 against 54.5 in November, the PMI signals a clear improvement in operating conditions.
Built around the controls
The driving force behind the recovery in December was the strength of new orders landed at local businesses. The rate, according to IHS Markit, is the fastest since July 2019. “The companies surveyed noted that the increase in new work was often due to the recent easing of travel restrictions which, along with Expo 2020, had boosted demand. tourist “, report adds. “Businesses also cited improved local sales as consumer confidence increased.”
Omicron cases around the world have understandably had business owners concerned about the outlook for the New Year.