Conditions in Dubai’s non-oil private sector economy remained broadly unchanged in October with only a slight rise in new work amid a global second wave of Covid-19 infections. The seasonally adjusted IHS Markit Purchasing Managers' Index dropped to 49.9 in October, from 51.5 in September. A reading above 50 indicates expansion. The latest data signals an end to a consistent three-month run of economic expansion. "After a robust quarter of growth for the Dubai non-oil economy, October data pointed to a more subdued picture as overall business conditions were left broadly stable,” David Owen, an economist at IHS Markit, said. The non-oil economy of Dubai, the commercial and trading hub of the Middle East, expanded throughout the third quarter as the emirate removed most restrictions put in place earlier this year to contain the spread of the virus. However, a second wave of Covid-19, affecting parts of Europe, Americas, Asia and the Middle East, has dampened the economic outlook, with some major European economies moving back into lockdown. Covid-19 infections globally have crossed the 50 million mark with the death toll reaching 1.26 million as of Monday, according to tracking data from <a href="https://www.worldometers.info/coronavirus/">Worldometer</a>. Dubai has unveiled several measures over the past few months to help its economy and businesses recover. Last month, the emirate launched another economic stimulus package worth Dh500 million, bringing the total value of stimulus provided this year to Dh6.8 billion. Some of the businesses surveyed said subdued market conditions prevented further expansion. "Output levels declined in the construction and travel and tourism sectors, mostly due to a lack of new building projects and weak tourist numbers,” Mr Owen said. “Growth in the wholesale and retail sector was the softest in five months." The survey found that “firms still expect a rise in activity in the coming 12 months, but the degree of positivity was only fractional”. Job numbers also fell in October, gathering pace from September, but the decline was still only the second-weakest in the past eight months. Firms linked a reduction in employment to cost-cutting measures. On the price front, the latest data signalled a broadly unchanged level of expenses incurred at the start of the fourth quarter.
