Palm trees and buildings in Saudi Arabia

Saudi Arabia PMI June 2020

Saudi Arabia: Non-oil PMI ticks down in June, conditions continue to worsen

The Purchasing Managers’ Index (PMI), produced by IHS Markit, decreased to 47.7 in June from 48.1 in May. Consequently, the index remained below the 50-threshold, indicating worsening business activity in the non-oil private sector over the previous month.

June’s result reflected faster deteriorations in output, new orders and employment compared to May. Disruptions to business operations and capacity constraints kept the index below its pre-pandemic levels, and some firms highlighted declining workloads, which coupled with lower business confidence weighed heavily on employment levels.

On the price front, despite disruptions to supply chains, input prices fell in June, while firms continued to discount selling prices to spur demand.

Tim Moore, Economics Director at IHS Markit, commented that:

“Subdued domestic demand and a sharp drop in export sales led to additional price discounting in June. Average prices charged have now dropped for five months in a row and the resulting squeeze on margins has led to more widespread cost cutting initiatives across the private sector.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest