Saudi Arabia: Non-oil business activity slows in August
The Riyad Bank Global Purchasing Managers’ index (PMI) fell to 56.6 in August from July’s 57.7. August’s result marked the worst performance since September 2022. As a result, the index moved closer to the 50.0 no-change threshold, signaling a softer, albeit still strong, improvement in private non-oil sector operating conditions from the previous month.
Output and new orders continued to expand at quick paces, despite slowing from the past month due to strong competition. In addition, employment continued to grow. Meanwhile, input inflation rose, which in turn caused output prices to roughly stabilize after dipping last month. Finally, business sentiment dipped, also because of rising competition.
Riyad Bank’s Naif Al-Ghaith said:
“Non-oil activities have managed to expand despite the continuous challenges arising from input prices and the high interest rates […amid] ongoing reforms and projects that is under the vision 2030.”