Saudi’s business conditions across non-oil sector at more than 7-year high

Saudi’s business conditions across non-oil sector at more than 7-year high

Business activity in the non-oil private sector economy of Saudi Arabia continued to improve in November, growing at the fastest pace since August 2015 as new order growth accelerated to a 14-month high, leading to a sharper rise in purchasing activity.

The reading on Riyad Bank’s purchasing managers’ index for Saudi Arabia jumped to 58.5, from 57.2 in October, well above the neutral 50 mark that separates growth from contraction.

The reading was also the highest since September 2021 and above the long-run series average of 56.8.

Non-oil companies cited a sharp rise in new business in November, which survey panellists attributed to improving economic conditions, rising client demand and increased investment.

The rate of sales growth was at its sharpest in more than a year, with more than 41 per cent of surveyed businesses reporting an increase from the previous month.

In addition to strong domestic conditions, companies registered the quickest increase in new export business since November 2015, with output levels expanding at their strongest pace in more than seven years across the manufacturing, construction, wholesale and retail and services sectors.

Rising demand encouraged non-oil businesses to expand their purchases in November while input buying rose at the second-fastest rate since August 2015, leading