Saudi Arabia: Non-oil economic conditions improve to six-month high in May
June 5, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit inched up from April’s 54.2 to 54.8 in May, which marked the highest reading since November 2015. As a result of the increase observed in May, the PMI is moving further above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
May’s result mainly reflected stronger growth in output and new orders. Job growth, however, remained modest in the same month. Weak salaries and purchasing costs drove total price pressures to ease in May. According to Emirates NBD, “the rise in the Saudi PMI to the highest reading in six months is encouraging, as it shows the resilience of the non-oil economy even in the face of tighter fiscal policy. Domestic demand remains robust, even as export demand has softened.”