Non-oil businesses in Saudi expand in November; new orders growth softens

Non-oil businesses in Saudi expand in November; new orders growth softens

While Saudi Arabia’s non-oil economy continued to expand in November on the back of strong demand and slight price pressures, a softening in new business growth meant it was the least marked expansion since August, the latest survey of purchasing managers showed on Sunday. The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) fell to 56.9 in November from 57.7 in October, down to a three-month low. However, the index was in line with the average recorded over the 12-year series. The New Orders Index, the largest component of the headline PMI, fell for the second month in a row from September's seven-year high. “Despite this, the index continued to indicate a robust upturn in new business volumes that was stronger than most of the recovery period since the initial COVID-19 lockdown,” the report said. Survey panellists attributed the higher sales to a continued return to normal economic conditions and a boost to tourism from relaxed travel measures. New export orders rose in November at their fastest pace since May, due to higher demand from abroad as mobility restrictions eased. "The Saudi Arabia PMI continued to signal a strong end to the year for the non-oil economy.