Saudi Arabia: Non-oil PMI matches May's pace of expansion in June
July 5, 2021
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 56.4 in June, which matched May’s result. Consequently, the index remained above the 50-threshold, indicating improving business activity in the non-oil private sector.
June’s sustained momentum reflected stronger growth in new orders, which was offset by easing output growth. Meanwhile, employment levels rose relative to the previous month, supported by the loosening of Covid-19 restrictions, which bolstered business confidence in June. On the price front, input prices continued to rise, but there were some signs that price pressures may have peaked in June.
David Owen, an economist at IHS Markit, commented:
"Demand growth in the Saudi Arabian non-oil sector ramped up again in June, with the latest data signaling the strongest rise in sales since January. The rollout of COVID-19 vaccines and easing of restrictions also helped to lift confidence for future activity to a five-month high, as firms hope that the economic recovery will accelerate over the second half of the year.”
Author: Steven Burke, Economist