Saudi’s PMI hits 57.2 in October: S&P
Saudi Arabia’s Purchasing Managers’ Index (PMI) hit 57.2 in October, the strongest since January 2021, as the Kingdom’s non-oil economy continues to expand driven by strong demand and rising new work inflows.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index — formerly the S&P Global Saudi Arabia PMI — shows the Kingdom continues to expand for the 26th month in a row.
In September, Saudi Arabia’s PMI was 56.6.
A reading above the neutral level of 50 indicates growth while one below it points to a contraction.
“Business activity and new orders rose sharply again, with firms seeing client demand strengthen at a robust rate,” said Naif Al-Ghaith, chief economist at Riyadh Bank.
“This was helped by a softening of price pressures; input costs rose at the slowest pace since February, which translated into only a modest uptick in selling charges.”
Output and new orders, the two largest components of the headline PMI index, expanded significantly both in terms of activity and sales at the beginning of the fourth quarter.
Businesses surveyed said improving market conditions drove the increase in new work, while ongoing projects also supported increased output volumes.
Sales growth was supported by rising demand from foreign markets in October, as new export orders climbed at the sharpest rate in almost a year.
The upturn was “broadly aligned with the trends seen since the survey began in August 2009”, Riyadh Bank said.
The business recorded growth across sectors in the latest survey period, with output expansion in manufacturing, construction, wholesale, and retail and services sectors. Goods producers recorded the strongest upturn in October.
Employment in the kingdom’s non-oil economy rose slightly, while inflationary pressures softened notably in October, with companies reporting the slowest rise in input costs for eight months.