Saudi Arabia: Non-oil economic conditions moderate in June
July 11, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit inched down from May’s 54.8 to 54.4 in June. While the PMI remained at historically low levels since the start of the year, the index is still comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
June’s result reflect strong growth in output, new orders and purchasing activity, while job creation remained modest in the same month. Moreover, cost pressures intensified in June, which translated into the first increase in charges since October 2015. Despite low oil prices and less lavish government spending, businesses sentiment in the non-oil sector remains relatively strong. According to Emirates NBD, “firms appear to be increasing operating efficiency, as jobs growth remains sluggish even as activity and new orders are rising.”