Riyadh - Sharikat Mubasher: Saudi Arabia’s Purchasing Managers’ Index (PMI) increased for the second consecutive month from 54.8 in August to 56.3 in September, signaling a further acceleration in non-oil private sector growth.
The Riyad Bank Saudi Arabia PMI report stated that non-oil private sector business conditions strengthened in September as the activity growth rate accelerated and sales momentum improved.
This 1.5-point rise in the PMI was associated with sharper expansions in output and new orders, as well as a tightening of supply conditions.
The non-oil private sector witnessed a notable acceleration in new order growth in September, driven by the improvement in domestic demand, new clients, and promotional efforts.
Naif Al-Ghaith, Chief Economist at Riyad Bank, commented: “This growth in the non-oil sector is particularly significant given the current context of oil production cuts and declining global oil prices. As oil revenues come under pressure, the robust performance of the non-oil private sector serves as a buffer, helping to mitigate the potential impact on the country's economic health.”
The PMI survey was sent to purchasing managers in a panel of around 400 private sector companies. It is a weighted average of five indices: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%).
