Saudi Arabia: PMI falls in September
October 6, 2015
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit fell from August’s 58.7, which had marked a five-month high, to 56.5 in September. As a result, the PMI moved closer to the 50-threshold, which indicates expansion in business activity in the non-oil producing private sector.
September’s result mainly reflected weaker growth in new orders and output. Meanwhile, employment was broadly unchanged from August’s result. The rate of input price inflation rose in September, although it remained moderate overall. According to Emirates NBD, “the PMI readings for Saudi Arabia have remained relatively robust year-to-date may be counter-intuitive at first glance, given the much lower oil prices. However, oil production has increased nearly 6% this year, and this has underpinned activity in the refining and petchem sectors.”