Saudi Arabia: Non-oil business activity receded in September from August's one-year high
October 5, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit fell from August’s one-year high of 56.6 to 55.3 in September. Nevertheless, the index remains comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
September’s result reflected a weaker expansion in both new business and job creation, whereas output continued to expand at a healthy pace. Increased competition drove both purchase costs and charges to moderate in September. According to Emirates NBD, “Saudi Arabia’s PMI eased only slightly in September, on weaker new order growth. However, the average PMI for Q3 2016 points to a faster rate of expansion in economic activity compared to the first half of this year. Recent announcements on spending cuts in the Kingdom are likely to weigh on household consumption and consumer confidence however, as we head into Q4.”