Saudi Arabia: Non-oil business activity climbs to 17-month high in January
February 5, 2017
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from December’s 55.5 to 56.7 in January, the highest value since August 2015. As a result, the index remains comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
January’s improvement reflected a robust expansion in output and new orders. Business sentiment benefited from better economic conditions and rising foreign demand. Despite the overall improvement, staffing levels grew only slightly. On the price front, higher input prices led to an increase in charges for the third month in a row. Overall, analysts at Emirates NBD see the rise in the PMI as “an encouraging start to the year.”