Saudi Non-Oil Sector Growth Stays Solid Despite Weaker Export Sales

Saudi Arabia's non-oil private sector experienced solid growth in July, driven by improved domestic demand and sustained output levels. According to the Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), compiled by S&P Global, the index fell to 53.1 in July from 53.3 in June.

The PMI is a key indicator of economic health, with a reading above 50 indicating growth and below indicating contraction. The survey suggests that domestic demand is gradually strengthening as market conditions normalize following recent regional disruptions.

Naif Al-Ghaith, Chief Economist at Riyad Bank, noted that the latest survey indicates sustained increases in both output and new orders, driven by improved domestic demand. However, export demand remained under pressure, with new export orders falling for a fifth consecutive month.