Job shedding eases in Dubai despite renewed fall in output

Job shedding eases in Dubai despite renewed fall in output

Business activity in Dubai's non-oil private sector declined in November, but job shedding eased as the impact of the pandemic appeared to worsen amid increased worries about a slowing economic recovery, latest data showed.

The IHS Markit Dubai Purchasing Managers' Index (PMI) report said on Monday growth in new work eased to the weakest seen in five months, leading to a solid reduction in output, while, sentiment regarding the next 12 months of activity fell to a new record low.

The PMI survey posted 49.0 in November, the lowest recorded since May, although job shedding eased to the weakest seen in the nine-month downturn.

“A renewed fall in output and slower sales growth were evident across the Dubai non-oil private sector in November, highlighting the possibility of a ‘double-dip' economic downturn from the pandemic,” said David Owen, an economist at IHS Markit.

With Covid-19 cases rising in the UAE and globally, firms were uncertain as to how restrictions may impact new business in the near future. “However, news about effective vaccines could restore long-term optimism, as firms are likely to place greater hopes of a strong recovery in 2021,” said Owen.

He pointed