New export orders received at Saudi Arabian nonoil producing private sector firms rose further in December and at the sharpest rate in 17 months, according to a survey.

The Saudi British Bank (SABB) has published the results of the headline SABB/HSBC Saudi Arabia Purchasing Managers’ Index (PMI) for December 2012 — a monthly report issued by the bank and HSBC.

It reflects the economic performance of the Saudi Arabian non-oil producing private sector companies through the monitoring of a number of variables, including output, orders, prices, stocks and employment.

Operating conditions in the Saudi Arabian nonoil producing private sector improved again in December, as the headline PMI posted a reading of 58.9, up from 57.0 in November.

Output and new orders increased solidly and employment levels rose at the sharpest rate in three months. Meanwhile, the overall rate of input price inflation weakened slightly.

December data signaled a further rise in production at nonoil producing private sector firms in Saudi Arabia, with almost 30 percent of respondents indicating higher output levels.

New orders continued to increase, and at a higher rate than in the previous survey period. Panelists linked growth of new work to improved market conditions.

New export orders received at Saudi Arabian nonoil producing private sector firms rose further in December and at the sharpest rate in 17 months. Improved economic conditions were given as one of the drivers behind the latest increase. Meanwhile, the level of outstanding work decreased slightly, and for the second month running.

Employment levels continued to rise during December, and at its sharpest rate in three months.

More than 9 percent of companies indicated the hiring of additional staff and linked this to increased business. Concurrently, average prices charged by non-oil producing private sector firms in Saudi Arabia rose, which was partly driven by increased input costs.

Overall input prices increased, although the rate of input cost increase weakened slightly.

The rise in purchase prices was attributed to global inflationary pressures.

Only a modest rise in average prices paid for salaries was reported at the end of 2012.

The latest survey data indicated an increase in the quantity of items purchased at nonoil producing private sector firms in Saudi Arabia.

Higher business requirements were one of the drivers behind the expansion.