Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector maintained its expansion in June, driven by a sharp increase in output amid an improvement in new business growth.
The latest Riyad Bank Saudi Arabia PMI report showed that the Purchasing Managers’ Index (PMI) rose to 53.3 in June from 52.8 in May, rising above the 50.0 neutral mark
The reading showed a solid improvement in operating conditions at the end of the second quarter, although one that was softer than the survey's long-run trend. Nearly 18% of surveyed firms reported higher output, versus just 2% noting declines, with growth attributed to project approvals, stronger customer demand, and renewed sales activity following earlier postponements.
New business volumes across the non-oil economy demonstrated stronger momentum in June, as the rate of growth accelerated to a sharp pace that was the most marked since February.
Naif Al-Ghaith, Chief Economist at Riyad Bank, said: “Stronger output and the fastest increase in new orders in four months suggest that business activity regained momentum towards the end of the second quarter. The latest survey reinforces the resilience of the domestic economy, with the non-oil sector continuing to provide a solid foundation for overall economic growth.”
The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).
