Riyadh – Sharikat Mubasher: Saudi Arabia’s non-oil private sector maintained steady growth in August as the Riyad Bank Purchasing Managers’ Index (PMI) inched up to 56.4 from 56.3 in July.
The report showed modest gains in output and new orders, supported by a renewed increase in export sales. Employment continued to expand, marking another month of robust hiring, while stronger purchasing activity lifted inventories to their highest level in four months.
Although input costs stayed elevated due to materials, transport, and technology expenses, firms raised selling prices for the third consecutive month. Business confidence also strengthened, with companies pointing to rising demand, active projects, and supportive government policies as key drivers of optimism.
Naif Al-Ghaith, Chief Economist at Riyad Bank, commented: “Firms reported stronger new business inflows, supported by an uptick in export orders and continued growth in domestic demand. Many attributed the improvement to more active marketing efforts and a healthier client pipeline, particularly across the service sector.”
Worth mentioning, the Riyad Bank Saudi Arabia PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies.
The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%)
