Saudi Arabia: Non-oil business activity rises in July from June's eight-month low
August 3, 2017
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from June’s eight-month low of 54.3 to 55.7 in July. Therefore, the index remains comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
July’s print reflected stronger growth in new orders and output on the back of healthy underlying demand and construction activity. As a result, firms’ purchasing activity increased and companies were encouraged to create more jobs. Khatija Haque, Head of MENA Research at Emirates NBD, highlights that, “faster growth in output and new orders helped the headline PMI in Saudi Arabia rise in July, signaling the fastest rate of non-oil sector expansion in three months. Firms were more optimistic last month, and this likely contributed to increased buying activity and inventory accumulation.”