Saudi Arabia: Non-oil business activity jumps to one-year high in August
September 5, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from July’s 56.0 to 56.6 in August. The PMI hit its highest level in a year, keeping it comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
August’s result reflected that output and new orders expanded at a strong rate. Employment and purchasing activity also increased more rapidly compared to July. Cost pressures resurfaced in August, which translated into an increase in charges to clients. According to Emirates NBD, “the rise in the Emirates NBD Saudi Arabia PMI to the highest level in a year is encouraging, although we note that the average PMI so far this year is still below 2015, indicating a slower rate of private sector growth. […] Record high oil production in July and August likely supported activity in the manufacturing sector over the summer.”