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Dubai private sector companies signalled a positive start to the third quarter of 2016, with overall business conditions improving at the fastest pace since March 2015.

This was evident in the rise in the Dubai Economy Tracker Index, which went up from 54.6 in June to 55.9 in July.

The best performing sub-sector monitored by the survey was wholesale & retail (index at 57.3 in July), followed by travel & tourism (55.1) and construction (53.5).

“The wholesale & retail sector in particular probably benefitted from holiday spending over Eid,” said Khatija Haque, Head of Mena Research at Emirates NBD, a Dubai-based bank that publishes the monthly tracker.

“The improvement in the Dubai Economy Tracker index in July is consistent with the rise in the whole UAE Purchasing Managers Index last month, and is underpinned by stronger new work and output growth,” she added.

With the latest monthly rise, the index has now signalled a recovery in operating conditions in each month since the series-record low seen in February 2016. In addition, the latest reading is now back above the long-run survey average (55.1).

The bank says its Dubai Economy Tracker Index is derived from individual diffusion indices which measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods.

A reading of below 50 indicates that the non-oil private sector economy is generally declining; above 50, that it is generally expanding. A reading of 50 signals no change.

The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.

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