Activity in the United Arab Emirates' (UAE) non-oil private sector grew at a slower pace in June, data from a survey conducted by HSBC and Markit Economics showed Tuesday.

The seasonally adjusted HSBC/Markit purchasing managers' index (PMI) declined to its three-month low of 55.2 in June from 56 in May. The reading, however, remained above its long-term trend. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline.

Production in the country's non-oil private sector increased for 17th consecutive month in June, though at the slowest pace since September 2010.

New business increased at a marked pace during the month, as demand increased on favorable market conditions, new product launches and competitive pricing. The rate of growth was the second-sharpest in the series history.

At the same time, companies raised buying activity, built up input stocks and hired additional staff to accommodate current and expected growth of new works. Purchases rose at a near-survey record pace, while job creation was the weakest since November 2010.

Input price inflation eased during June, but remained higher than the survey averages. At the same time, output price inflation was the weakest since February.

RTTNews