Saudi Non-Oil Sector Sees Strongest Growth Since February
Saudi Arabia's non-oil private sector experienced its strongest growth in six months in August, according to the Riyad Bank Purchasing Managers' Index (PMI). The PMI reading climbed from 53.1 in July to 53.8, marking a fifth consecutive month of expansion and the best improvement in business conditions since February.
The upturn was driven by stronger business activity and domestic demand, with output expanding at its strongest pace in seven months and new orders rising for a fifth consecutive month. However, new export orders declined at a faster rate due to regional tensions.
Naif Al-Ghaith, chief economist at Riyad Bank, stated that the survey showed 'that the non-oil economy is maintaining positive momentum through the third quarter.' He added that the improvement reflects a continued recovery in market activity and output expanding closer to its long-run average of 56.8.