Saudi Arabia’s non-oil private sector expands strongly in August

Saudi Arabia’s non-oil private sector expands strongly in August

Saudi Arabia's non-oil private sector activity and new orders expanded to a ten-month high and cost pressures eased further, a business survey showed on Monday.

The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers' Index (PMI) rose to 57.7 in August from 56.3 in July, its highest since October 2021.

The index also climbed above its series average of 56.8, boosted by as faster growth in output, new orders and stocks of purchases, the report said.

Purchasing grew to its fastest in seven years as businesses looked to fulfil current demand and build extra stocks in anticipation of further sales growth.

"The Saudi Arabia PMI pointed to added resilience in the non-oil economy during August, as business activity and sales continued to rise sharply despite reports of mounting global economic distress," said David Owen, economist at S&P Global Market Intelligence.

"Total new orders rose at the quickest pace since October last year, driven by improving client demand, higher exports, and a broad recovery in economic conditions since the pandemic."

Jobs were added, albeit at a slower rate, for the fifth successive month as firms looked to build capacity.

Both input cost and output price inflation slowed during August, as global commodity prices softened. However, fuel costs and