Saudi Arabia: Non-oil PMI climbs to over four-year high in October
The Purchasing Managers’ Index (PMI), produced by IHS Markit, jumped from September’s 57.3 to 57.8 in October. The print represented the highest value since August 2015. Therefore, the index remained above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
October’s result reflected solid domestic sales boosting output and new orders. Moreover, demand from overseas markets is gradually picking up, supporting the Kingdom’s overall economic activity. Robust economic conditions led to an increase in purchasing activities. Job creation, however, remains subdued, with the employment sub-index moderating from September. On the price front, although input prices were broadly unchanged, output charges declined as companies are trying to stimulate further client orders.
Looking forward, Amritpal Virdee, Economist at IHS Markit, commented that:
“At current levels, the PMI is indicative of GDP expanding at an annual rate of around 4%, which would be a notable acceleration in growth from the start of 2019.”