Saudi Arabia: Non-oil PMI ticks down in July, but remains upbeat nonetheless
The Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 55.8 in July, which was down from June’s 56.4. Nevertheless, the index remained above the 50-threshold, indicating improving business activity in the non-oil private sector.
July’s loss of momentum reflected weaker growth in new orders, output and employment relative to June. On the price front, input prices continued to rise, but at a softer pace than in the previous month, while output inflation accelerated.
David Owen, an economist at IHS Markit, commented:
“Sustained rises in demand should help the economy move closer to full capacity over the second half of the year. However, a drop in business expectations to its joint weakest since June 2020 illustrated growing doubts that this will be a smooth ride.”