Saudi’s non-oil economy continues to improve at ‘rapid pace’

Saudi’s non-oil economy continues to improve at ‘rapid pace’

Business conditions in Saudi Arabia’s non-oil economy continued to improve in October, with private companies reporting rising sales and trade flows, according to IHS Markit’s latest purchasing managers’ index (PMI). Output levels in the sector rose at the sharpest pace in nearly four years during the month, driven mainly by an upturn in demand, while new export work also jumped to its highest level since May. “October PMI data showed the non-oil sector recovering at a rapid pace. Growth in output was the strongest seen for nearly four years, driven by marked rise in client demand as the lifting of COVID-19 restrictions continued to boost economic activity,” said David Owen, economist at IHS Markit. The headline seasonally adjusted IHS Markit Saudi Arabia PMI stood at 57.7 in October. The latest reading may be slightly down by 0.9 points from the previous month, but IHS Markit pointed out that it’s still indicative of a significant growth in sales. It was not only the second-highest reading since the start of the pandemic, it was also above the long-run series average. “New export work increased to the greatest extent since May, as panellists commented on improving global trade flows. Driven by rising sales,