STOCK Construction in Dubai economy skyline
Non-oil companies continued to indicate a strong demand environment in January, the S&P report said. Image Credit: Bloomberg

Demand levels in Dubai remained high in January, and output levels rose rapidly, a new report said on Thursday.

Delivery times, meanwhile, improved at the strongest rate since September 2019, the latest S&P Global Dubai PMI report said.

At 54.5 in January, the headline index remained well above the 50.0 neutral threshold to signal a robust improvement in operating conditions at the start of the year.

Rising demand and stable input costs encouraged increases in employment and inventories, the report said, while non-oil companies continued to indicate a strong demand environment, with numerous reports of higher customer orders, increased advanced bookings and new projects commencing.

“Dubai companies continued to benefit from relatively benign supply side and pricing conditions. Delivery times improved at the strongest rate in three-and-a-half years, whilst overall input costs were largely unchanged following a slight drop in December. These factors helped firms to increase their headcounts and boost inventory levels,” said David Owen, Senior Economist at S&P Global Market Intelligence.

The improvement in supplier performance supported another round of input stockpiling and meant that cost pressures remained relatively settled.