Saudi output growth falls sharply to lowest in 10 months: IHS Markit

Saudi output growth falls sharply to lowest in 10 months: IHS Markit

Published 05 Sep,2021 via Arab News - Economy - Saudi Arabia's activity growth in the non-oil sector weakened in August with output expansion at its weakest in 10 months.

August PMI data from IHS Markit survey data showed a fall to 54.1 in August down from July's 55.8.

Despite the fall, the reading suggested an improvement in the non-oil sector, albeit a slower growth as the subdued recovery was put down in part to increases in Covid-19 cases globally dampening foreign demand.

The knock-on effects of the softer recovery saw business confidence and hiring growth remain muted with SA firms reporting a low level of hiring activity in August.

David Owens, Economist at IHS Markit, said: "The non-oil economy went slightly off the boil in August, as output growth slipped to the weakest level for ten months amid a slowdown in new business gains. Whilst domestic orders remained strong and firms saw an upturn in tourist numbers, many businesses continued to