Saudi Arabia: Challenging economic conditions weigh on PMI in January
February 4, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit fell from December’s 54.4 to 53.9 in January. Although January’s reading represented the lowest print in the indicator’s six-and-a-half-year history, the PMI rests above the 50-threshold, which indicates expansion in business activity in the non-oil producing private sector.
January’s result mainly reflected weaker growth in new business, output and employment. According to Emirates NBD, “the slowdown in the non-oil sectors is in line with our expectations as the economy adjusts to lower oil prices and fiscal policy is adjusted accordingly. Global financial market volatility in the first weeks of 2016, and increased concerns about Chinese and global growth are likely to have weighed on sentiment, and may have contributed to the sharp slowdown in new export orders last month.”