Publisher: Maaal International Media Company
License: 465734
A survey showed today, Tuesday, that the non-oil private sector in Saudi Arabia remained solid in September, driven by a relatively strong recovery in production and new orders, but its growth was slower than in August due to the decline in sentiment.
According to “Reuters” Saudi Arabia’s seasonally adjusted S&P Global Purchasing Managers’ Index fell to 56.6 in September from 57.7 in August, remaining significantly higher than the 50.0 reading, which indicates growth.
“The non-oil private sector economy in Saudi Arabia maintained an impressive pace of growth during September, especially against the backdrop of increasingly challenging global economic conditions,” said David Owen, an economist at Standard & Poor’s Global Market Intelligence.
He added, “Both production and new orders increased at rates that exceed their current average growth in 25 months, while confidence in the quality of goods and services provided means that companies that are expected to successfully convert into solid contracts win a high percentage, which is a very positive line for new business. “
The production sub-index, which measures business activity, fell to 59.5 in September from 61.5 in August. During the year, the growth rate of the index in September only exceeded its growth in August and June.
Owen said inflationary pressures “currently appear to have been contained”, while costs have risen “at an average rate over a wide range, along with non-oil companies’ keenness to maintain competitive pricing policies.”
The employment sub-index recorded the slowest pace of expansion since January.
The PMI report stated that “Wherever growth was recorded, it was associated with higher levels of activity and increased production requirements. Construction recorded the strongest increase in employment in the four sectors surveyed. The services sector witnessed a marginal decline.”