Saudi Arabia: Non-oil PMI continues to climb in November
The Purchasing Managers’ Index (PMI), produced by IHS Markit, jumped from October’s 57.8 to 58.3 in November. The print represented the highest value in over four years. Therefore, the index remained above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
November’s result reflected strong growth in new orders, which hit a nearly five-year high. Job creation, however, remained lackluster for historical standards and output growth decelerated to a four-month low. On the price front, output charges increased in November, while input prices posted a weaker gain, thereby supporting business margins.
Looking forward, Amritpal Virdee, Economist at IHS Markit, commented that:
“November’s PMI data for Saudi Arabia revealed a stronger improvement in underlying economic conditions and, when coupled with the recent improvements in growth momentum, point to a faster rate of non-oil GDP expansion for the fourth quarter of 2019. […] Overall, the private sector economy is well-placed as we look forward to 2020, with the survey’s forward-looking gauge, the Future Output Index rising to a nine-month high on the pace of new product initiatives and more positive forecasts for underlying demand.”