Saudi Arabia: Non-oil PMI hits a 10-month high in November
December 3, 2020
The Purchasing Managers’ Index (PMI), produced by IHS Markit, increased to 54.7 in November—the highest level since January—from 51.0 in October. Consequently, the index remained above the 50-threshold, indicating improving business activity in the non-oil private sector over the previous month.
November’s result reflected stronger output growth, while employment levels and new orders increased relative to the previous month. Moreover, business sentiment jumped to the highest level in ten months in November as easing lockdown measures and positive news on the Covid-19 vaccine front boosted confidence.
Turning to prices, input costs rose, while output prices increased robustly in November.
David Owen, an economist at IHS Markit, commented that:
"A third successive rise in the Saudi Arabia PMI pointed to an economy getting back on its feet in November. Supported by output and new business growth reaching ten-month highs, the data suggests a strong end to the year for the non-oil private sector.”
Author: Steven Burke, Economist