According to a report, Saudi Arabia’s Purchasing Managers’ Index hit 58.5 in November, the highest level since September 2021, as the Kingdom’s non-oil private sector expands despite mounting inflationary pressures.
According to the most recent Riyad Bank Saudi Arabia PMI survey, the Kingdom’s non-oil private sector has grown for the 27th consecutive month.
Saudi Arabia’s PMI was 57.2 in October, up from 56.6 in September.
S&P Global’s index shows that numbers above 50 indicate expansion, while levels below 50 indicate contraction.
“The Saudi economy (continued) its expansion in the non-oil sector in November, business conditions have improved across the board in light of rising demand,” said Naif Al-Ghaith, chief economist at Riyad Bank.
According to Al-Ghaith, output levels in the Kingdom’s non-oil sector have climbed at the fastest rate in seven years, increasing cost pressures and resulting in higher prices offered to customers.
He added: “Improved business expectations were also observed as a result of the ongoing execution of Vision 2030 initiatives, which provided confidence to the outlook of the future output of the non-oil activities.”
According to the research, non-oil company sales growth accelerated to the fastest rate in over a year in November, with more than 41 percent of questioned businesses reporting an increase from the previous month.
Due to favourable domestic conditions, these companies enjoyed the fastest increase in new export business since November 2015.
The November PMI report also indicated at an increase in input cost inflation, with average input prices growing significantly and at the fastest rate since July.
“The faster pace of cost inflation led to a solid and quicker increase in output charges, as firms looked to pass through higher expenses to their customers,” the report added.