Saudi Arabia: PMI slides to record low in June
July 5, 2015
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit fell from May’s 57.0 to 56.1 in June. Although the PMI remains well above the 50-threshold, indicating an expansion in business activity in the non-oil producing private sector, the index hit a survey-record low in June.
June’s result mainly reflected weaker growth in new orders and to a lesser extent in stocks of items purchased and job conditions. On the other hand, the output category continued to increase as a result of healthy growth in new businesses. According to Emirates NBD, “while the PMI data suggest that growth in the non-oil sector has slowed markedly in Q2 2015, it is important to note that these sectors are still growing at a robust rate, with the PMI readings well above the neutral 50-level.”