Saudi Arabia: PMI signals another strong expansion in July
The Purchasing Managers’ Index (PMI), produced by S&P Global, came in at 56.3 in July, down from June’s eight-month high of 57.0. As such, the index remained firmly above the 50.0 no-change threshold, signaling sustained improvement in business conditions compared to the previous month. July’s reading also marked the 23rd consecutive month of improving conditions.
Output and new orders rose at healthy rates in July. As such, job creation accelerated to the strongest pace in nearly three years, leading to a sharp reduction in the backlogs of work. Delivery times also declined, while firms remained optimistic about the future. Finally, July’s reading showed that price pressures for Saudi firms grew, with both input costs and output charges increasing solidly.