Dubai’s non-oil economy grew in March: Emirates NBD

Dubai’s non-oil economy expanded in March following the rise in output and new work, with Emirates NBD’s Dubai Economic Tracker climbing 3.6 points to 52.5 from the series low in February, the bank’s latest report showed on Monday.

Output index and new work sub-indices stood at 54.8 and 54, respectively – above the neutral mark of 50.

The business optimism sub-index also jumped 6.2 points to 64.7 in March, the report said. Employment rose, but jobs growth remained “modest.”

Input costs were stable, the report said, while output prices continued to fall on average. The rate of decline in output prices was slower than that of February.

The construction sector index rose 3 points last month to 52 signaling the first month of expansion in 2016. The output sub-index rose 5.7 points to 54.2, as firms reported that new projects had been started. New work/orders also grew in March, however, firms continued to cut output prices on an average.

The travel and tourism sector posted the strongest gain, with output surging to the highest reading since June 2015. New work growth was recorded as company’s reduced prices to attract new business. Input costs declined on average for the first time since the series began.

The survey “suggests that after a slow and uncertain start to 2016, activity appears to have picking up at the end of Q1,” the report said.