RIYADH: Dubai’s non-oil business activities witnessed its strongest growth in 10 months, driven by robust progress in the construction and tourism sector, an economy tracker showed.

According to the seasonally adjusted S&P Global UAE Purchasing Managers’ Index, Dubai’s PMI rose to 56.9 in June after easing to 55.3 in May.

“Dubai’s non-oil private sector economy enjoyed accelerating growth of new business in June, supporting another marked rise in overall output. All three of the key sectors monitored — construction, wholesale and retail and travel and tourism — registered faster increases in new work midway through the year,” said Trevor Balchin, economics director at S&P Global Market Intelligence.

According to the index, any reading above 50 indicates growth in the non-oil private sector, while readings below 50 signal contraction. 

The S&P Global report revealed that the headline index remained well above its long-run trend level of 54.6, and the month-on-month rise at 1.6 percent is the highest since October 2021. 

The report noted that employment also rose in June compared to previous months as companies steadily built their inventories and supply chains improved further.

Balchin added: “Strong demand led to further job creation, with the current 14-month run of growth the longest in over six years. Companies were also able to continue offering lower prices to customers despite a slightly faster rate of input price inflation during the month.”

The report pointed out that the recruitment process was mainly robust among construction firms in Dubai.

The report added that companies could continue offering lower prices to customers despite a slightly faster rate of input price inflation during the month.

However, the 12-month outlook for activity eased slightly since May but was still the second strongest since October 2021. Construction was the most optimistic of the three key sectors monitored, followed closely by wholesale and retail.

The report also noted an improvement in supply chains during June, with average lead times falling for the sixth month. Companies reported that requests for quicker deliveries had been met by suppliers, aided by the prompt payment of orders.