NBD Saudi Arabia PMI edged upwards to a three-month high
Staff Writer |
At 55.1 in August, up from 54.9 in July, the headline seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) – a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil private sector economy – edged upwards to a three-month high.
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The figure remained well above the 50.0 no-change threshold, and indicated a sharp improvement in business conditions across the non-oil private sector.
The latest data indicated an uptick in output growth across the non-oil private sector.
Many firms linked higher activity to stronger inflows of new business.
Despite August’s improvement in output being sharp overall, the rate of growth was below the historical average.
Continuing the current phase of improvement registered since May, new orders received by non-oil private sector companies in Saudi Arabia increased again in August.
Whilst domestic client demand remained robust, some respondents noted that they used promotional activity to stimulate demand during the latest survey period.
New export orders increased, albeit at only a marginal pace overall.
Reflecting stronger inflows of new business, firms reported a marked build-up in work outstanding in August.
Some companies noted that output had been focused on ongoing projects whilst new orders were adding to the backlog of work.
On the price front, selling prices fell once again in the non-oil private sector, linked to promotional activity.
Meanwhile, input price pressures remained moderate and unchanged since the preceding survey.
In response to higher output requirements, firms in the non-oil private sector upped their purchasing activity during August.
The rate of growth was sharp overall and the strongest seen in 2018 so far.
Reflecting increased input buying activity, stocks of purchases increased at a marked rate during the latest survey period. ■