Demand growth cooled within Dubai's non-oil private sector resulting in a smaller rise in new business, yet output levels grew, according to a survey of businesses within the sector.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell from the 10-month high of 56.9 in June to 55.7 last month.

The survey takes into account the Dubai non-oil private sector economy, as well as additional sector data for travel & tourism, wholesale and retail & construction, Zawya reports.

"After ticking up to a 10-month high in June, there was nonetheless a cooling of demand growth, with each of the three key sectors monitored - construction, wholesale & retail and travel & tourism - reporting a weaker rise in new business," stated David Owen, Senior Economist at S&P Global Market Intelligence.

Although non-oil businesses reported a steep rise in new business, with the expansion trend continuing since October 2021, certain panellists said the competitive conditions had hampered sales. The slowdown was registered within the three focus sectors, with the smallest increase in sales registered in wholesale & retail since March, the survey showed.

Travel & tourism was still the most robust in the sector in regard to demand growth, whilst the weakest was construction.

Cost pressures remained mild in July thanks to improvements in supply chains, and with only a minor rise in input costs, businesses could continue to provide customers with discounts.

Firms' positivity regarding future activity rose last month compared to June, the Zawya report goes on to say. That said, the rate of employment growth marginally moderated to stand at a three-month low.