Saudi Arabia: PMI hits highest reading since October 2021 in June
The Purchasing Managers’ Index (PMI), produced by S&P Global, came in at 57.0 in June, up from May’s 55.7. June’s result marked the best performance since October 2021. As such, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in business conditions compared to the previous month.
Input prices rose at the fastest rate in 22 months, with these costs largely passed on to consumers. However, the country’s non-oil output and new orders recorded stronger expansions compared to the previous month. As a result, employment rose for the third consecutive month. Moreover, Saudi firms increased their stocks of inputs, and delivery times shortened for a fifth consecutive month, suggesting an easing of supply bottlenecks. Backlogs of work decreased and the degree of optimism regarding future activity rose to the highest level since the start of 2021.