Saudi non-oil economic growth hits 9-month low in December

Saudi non-oil economic growth hits 9-month low in December

The adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) retreated to 53.9 points in December from 56.9 in November, marking the lowest levels witnessed by the Kingdom's non-oil private sector economy in nine months. The slowdown in growth is driven by the concerns about the Omicron variant that has negatively affected customer demands and business confidence, according to a press release on Tuesday. Meanwhile, the output levels rose at the softest rate since August, while new orders recorded a sharp slowdown in growth, resulting in a decrease in backlogs and hiring activity. The overall costs have also witnessed the fastest increase since June, attributed to price pressures on raw materials and other inputs. Hence, the outlook for future activity retreated to an 18-month low. However, the reading indicated a solid improvement in operating conditions across the non-oil private sector economy. The said: Owen added: