ABU DHABI (Reuters) -Saudi Arabia’s non-oil private sector growth was stable in August, with business activity expanding at a slightly quicker pace than in July, as new orders increased, a survey showed on Wednesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) rose to 56.4 in August from 56.3 in July, and remained well above the 50.0 mark indicating growth.
“The slight increase signalled another month of steady growth, driven by improving demand conditions, a modest rebound in output growth, and further gains in employment,” said Naif Al-Ghaith, Riyad Bank’s chief economist.
“Although activity growth has eased from the highs seen earlier this year, the underlying trend remains firmly positive.”
New order growth accelerated, supported by improved economic conditions, while new export orders also rebounded, driven by marketing activities and collaborations within the Gulf Cooperation Council region, marking the fastest upturn in four months.
The subindex for new orders climbed to 60.1 in August from 59.7 in July.
Employment continued to grow, albeit at a slightly slower pace than in previous months, as companies expanded sales teams and initiated new projects. Inventory growth reached a four-month high, in response to rising orders.
Companies raised their selling prices for the third consecutive month, the survey showed, and were faced with a sharp rise in input costs, driven by higher purchasing costs and global inflationary pressures.
Business confidence improved from a 12-month low in July and the outlook for future output strengthened to indicate positive sentiment among private non-oil sector firms.
(Reporting by Reuters; Editing by Hugh Lawson)
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