Saudi non-oil private sector expansion quickens as recovery deepens – PMI By Reuters – Investing.com

Saudi non-oil private sector expansion quickens as recovery deepens – PMI By Reuters – Investing.com

DUBAI (Reuters) - Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May and did so at a pace that quickened for a second straight month, a survey showed on Thursday, further solidifying its recovery from the pandemic and last year's historic slide in oil prices.

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) rose to 56.4 in May from 55.2 in April, its fastest pace of growth since January. It signalled a robust improvement in business conditions and approached the series average of 56.9.

Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shocks of the coronavirus pandemic and lower oil prices, the IMF said in a recent report.

The output subindex, a measure of business activity, climbed to 62.0 in May from 58.7 in April, its strongest pace since late 2017. That reading, above the series average of 61.5, indicated a rapid increase in output as firms noted rising new orders and increased marketing activities.

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