Saudi Arabia: Non-oil PMI eases in August, but remains in expansionary territory
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 54.1 in August, which was down from July’s 55.8. Nevertheless, the index remained above the 50-threshold, indicating improving business activity in the non-oil private sector.
August’s loss of momentum reflected weaker growth in new orders, output and employment relative to July. On the price front, input prices continued to rise, but at the softest pace in six months, while output inflation increased to a one year high in August.
David Owen, an economist at IHS Markit, commented:
“The non-oil economy went slightly off the boil in August, as output growth slipped to the weakest level for ten months amid a slowdown in new business gains. Whilst domestic orders remained strong and firms saw an upturn in tourist numbers, many businesses continued to find market conditions challenging amid the pandemic. That said, demand momentum is still largely on the upside, with nearly three times as many firms seeing a rise in new orders as those registering a fall.”