Saudi Arabia: PMI rebounds in November from October's record low
December 7, 2015
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit rose from October’s 55.7 to 56.3 in November. October’s reading represented the lowest print in the indicator’s history. The PMI rests comfortably above the 50-threshold, which indicates expansion in business activity in the non-oil producing private sector.
November’s result mainly reflected faster growth in new orders. While output, employment and stocks of purchases all were supportive to growth, they eased marginally compared to last month. According to Emirates NBD, “the improvement in the Saudi Arabian PMI last month is encouraging, particularly against a backdrop of sustained low oil prices and an announced freeze in government spending at the start of Q4. The faster growth in new orders and new export orders in November, and continued strength in output, suggests that both domestic and external demand are supportive of non-oil growth even as momentum has slowed from 2014. We expect that the rise in oil production this year has helped to support manufacturing, underpinning activity in the non-oil sectors of the economy.”