Saudi Arabia: PMI rises marginally in December
January 6, 2015
The Purchasing Managers’ Index (PMI) elaborated by the Saudi British Bank (SABB) and HSBC inched up 57.6 in November to 57.9 in December. The PMI is still well above the 50-threshold, indicating an expansion in business activity in the non-oil producing private sector.
December’s result showed, according to SABB and HSBC, “a strengthening in the rate of output expansion.” In addition, growth was supported by an increase in new orders and respondents indicated that backlogs rose for the 23rd consecutive month in December. Moreover, the increase in December also reflected a rise in payrolls, which benefited from an increase in new projects and rising volumes of new business. Regarding prices, respondents to the December survey noted that input price inflation was unchanged over the previous month.
Author: Ricardo Aceves, Senior Economist