Business activity in the UAE’s non-oil private sector grew at its fastest pace in 10 months in July, buoyed by sharp rises in both output and new orders, a survey of businesses showed on Wednesday.

The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index, which covers manufacturing and services, rose to 55.3 last month from 53.4 in June. A figure above 50 means business is expanding, while below 50 signals a contraction.

“It is encouraging that despite relatively weak exports, economic momentum is being supported by stronger domestic demand conditions.”

Output growth jumped to 62.1 in July from 58.9 in June, while growth in new orders accelerated to 57.5 from 54.8. Employment growth also rose, to 52.9.