Saudi Arabia: PMI in July rebounds from June's record low
August 4, 2015
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit rose from June’s survey-record low of 56.1 to 57.7 in July. As a result, the PMI remains well above the 50-threshold, indicating an expansion in business activity in the non-oil producing private sector.
July’s result mainly reflected stronger growth in new orders, output and to a lesser extent in purchasing activity. On the other hand, job conditions softened to a 14-month low in the same month. Meanwhile, input costs rose further in July, continuing the trend observed throughout the survey’s six-year history. According to Emirates NBD, “the latest PMI survey is encouraging, and suggests that the slight slowdown we’ve been seeing in the region’s largest economy since March is now over. Despite global oil prices remaining low, the pace of expansion in Saudi Arabia’s non-oil economy still appears robust, and coupled with rising oil output, will prove supportive to headline GDP growth in H2.”