Saudi Arabia: Non-oil PMI falls in May
The Riyad Bank Saudi Arabia PMI dropped to 56.4 in May from 57.0 in April. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in non-oil private-sector operating conditions compared to the previous month.
The latest PMI reading was primarily influenced by slower, but still-robust growth of business activity and new order growth; demand remained strong, particularly in domestic markets. The construction sector experienced the most significant expansion. Meanwhile, inventory levels reached a survey high in May in anticipation of future sales, even as purchasing growth slowed to its weakest since September 2021 due to elevated stock levels.
Regarding prices, firms faced relatively modest cost pressures, which allowed them to keep the inflation of prices charged low as they aimed to counteract growing competition. Lastly, the report noted a drop in business confidence towards the 12-month activity outlook, falling to its lowest level since January.