UAE - Mubasher: The seasonally adjusted S&P Global Dubai Purchasing Managers' Index (PMI) jumped to 56.1 in June from 55.7 in May, marking the highest reading since June 2019.

The reading reflects the quick expansion of Dubai's non-oil economy during June amid the improvement in business conditions at the quickest pace in three years, according to a press release on Wednesday.

This performance was witnessed despite a rapid acceleration in input cost inflation, attributed to a surge in fuel prices and the indirect effects on material and transport costs.

Meanwhile, new business volumes hiked in June, with the rate of growth accelerating to the most marked since July 2019.

The Economist at S&P Global Market Intelligence, David Owen, said: "The Dubai PMI continued to trend upwards in June, reflecting further strength in new business and activity. Travel demand continued to support sales, and there was a renewed increase in new work in the construction sector."

Owen added: "To aid sales, many firms are waving off price rises for now, and offering promotions where possible to combat strong market competition. However, if cost inflation is sustained at a high level in the second half of 2022, it will become increasingly difficult for firms to keep price increases at bay."