Saudi non-oil private sector activity sees robust expansion in October – PMI

Saudi non-oil private sector activity sees robust expansion in October – PMI

Business conditions in Saudi Arabia's non-oil private sector expanded at a faster rate in October supported by strong demand and rising new work inflows, a survey showed on Wednesday.

The companies surveyed reported improving domestic economic conditions and softening inflationary pressures, which led to the most optimistic outlook for future output since the beginning of 2021.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index rose to 57.2 in October from 56.6 in September. Readings above 50.0 indicate expansion in activity. The October reading was also the second-highest in a year, recording only slightly below August's recent high.

"Saudi Arabian non-oil businesses signalled a strong degree of confidence in future economic conditions in October. The outlook for the next 12 months rose to its highest level since the beginning of 2021, as firms suggested that the current robust level of growth is likely to continue," said Naif al-Ghaith, chief economist at Riyad Bank.

The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%) and Stocks of Purchases (10%).

The two biggest components, the Output and New Orders indices, continued to expand in both activity and sales at the start of the fourth