Saudi Arabia: Non-oil PMI surges in September, as Covid-19 restrictions ease
October 4, 2021
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 58.6 in September, which was up from August’s 54.1. The print marked a seven-year high, and consequently the index remained above the 50-threshold, indicating improving business activity in the non-oil private sector.
September’s acceleration reflected stronger growth in new orders and output, as looser restrictions allowed workers to return to offices, while tourism picked up notably in the month leading to stronger demand. That being said, firms reported adequate capacity levels with employment conditions remaining stable over the last month in September.
David Owen, an economist at IHS Markit, commented:
“The record rise in the PMI will be hugely encouraging for Saudi Arabian businesses. After two successive falls, the latest reading showed that the economic recovery has stamina, and the relaxation of pandemic measures will release new waves of demand.”
Author: Steven Burke, Economist