Saudi non-oil private sector keeps up steady growth

Though activity slowed due to higher production costs
Saudi non-oil private sector keeps up steady growth
Saudi flags (Image credit: Argaam)

Saudi’s non-oil economy grew strongly in September, though activity slowed due to higher production costs, according to the Purchasing Managers’ Index (PMI).

The seasonally adjusted S&P Global Saudi PMI for the whole economy eased to 56.6 in September from 57.7 in August. However, the index showed an improvement in the non-oil Saudi private sector’s economic conditions for the twenty-fifth consecutive month.

According to the index, the achieved growth was supported by a significant increase in both production and new orders, while businesses continued to increase their purchasing activity. Job creation has also continued, albeit at a slower pace, as confidence has fallen slightly since August. Cost pressures remained broadly stable, while output prices increased only slightly.

“Despite the September decline, Saudi Arabia’s non-oil private sector economy retained an impressive pace of growth during September, especially against the backdrop of increasingly challenging global economic conditions,” said David Owen, an economist at survey compiler S&P Global Market Intelligence, in a statement on Tuesday.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.