Saudi Arabia: Non-oil economic conditions jump to an eight-month high in July
August 3, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from June’s 54.4 to 56.0 in July. The PMI hit its highest level since November 2015 and, therefore, the index is still comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
July’s result reflected that job creation, output and new orders all expanded at a faster rate than in the previous month. Purchasing activity also increased more rapidly. Cost pressures were relatively stable in July, which translated into unchanged charges to clients. According to Emirates NBD, “July’s survey is encouraging as it suggests Saudi Arabia’s non-oil economy continues to expand at a healthy clip. Growth momentum is slower than last year, but is holding up better than many had expected in an environment of low oil prices.”