RIYADH: Dubai’s Purchasing Managers’ index climbed to a three-year high of 56.1 in June from the previous month’s 55.7, according to S&P Global.
This upturn indicates a robust improvement in Dubai’s non-oil private sector, primarily driven by travel and tourism.
According to S&P Global, any reading above 50.0 indicates an improvement in operating conditions.
“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,” said David Owen, an economist at S&P Global Market Intelligence.
New business volumes in June also witnessed a sharp surge in June, with the growth rate accelerating to the highest since July 2019.
Meanwhile, Dubai non-oil companies saw a sharp and accelerated rise in input costs in June due to a fuel price hike driven by supply chain concerns.
“The economy also faced the challenge of rising inflationary pressures, which led to the quickest increase in input prices since the start of 2018. The sharp uptick in global energy prices weighed heavily on businesses, with consumers also likely to feel the pinch on spending as fuel prices spike,” added Owen.
