Saudi non-oil economic growth remains strong in January 2021

Saudi non-oil economic growth remains strong in January 2021

A view of King Abdulaziz Port in Dammam, Saudi Arabia. File/ Reuters Growth in the Saudi Arabian non-oil economy remained strong over the first month of 2021, as business activity soared amid rising new work levels and a faster upturn in export sales. The expansion drove a sharp increase in purchasing activity. With coronavirus disease 2019 (COVID-19) vaccines being rolled out, firms remained hopeful of a substantial economic recovery over the coming year. The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) posted 57. 1 in January, up fractionally from 57. 0 in December, to record its highest reading since November 2019 and signal a marked improvement in business conditions across the non-oil private sector economy. The headline index was lifted by a faster expansion in output levels at the start of the year, and one that was the sharpest recorded for 15 months. Moreover, the rate of output growth was broadly consistent with the trend seen over the survey's 11-year history, as the economy recovered further from the COVID-19 outbreak. The expansion in business activity was helped by a sharp rise in new orders during January, despite the pace of growth easing slightly from December's recent