Saudi Arabia: PMI edges down in October, indicates slight moderation
November 5, 2014
The Purchasing Managers’ Index (PMI) elaborated by the Saudi British Bank (SABB) and HSBC fell from 61.8 in September to 59.1 in October. The index lost part of the ground gained in September, when the PMI reached its highest level in three years. Despite the monthly decrease, the index is still well above the 50-threshold, indicating an improvement in business conditions in the non-oil producing private sector.
SABB and HSBC stated that, “Saudi Arabia’s non-oil private sector continued to grow markedly in October, despite the rate of growth easing sharply on September’s 39-month peak.” October’s print was the result of a drop in the components of new orders, output and a decrease in stocks of purchases. In addition, foreign sales grew at a slower rate in October. Nonetheless, despite slightly slower business activity in October, businesses increased their staff, adding new employees to their payrolls.
Author: Ricardo Aceves, Senior Economist