JEDDAH: Growth in Saudi Arabia’s nonoil private sector slowed to a 12-month low in May as expansion of both output and new orders slackened, a survey of businesses showed.

The data may indicate that the impact of low oil prices, which have caused some oil industry projects to be halted or scaled back, is finally feeding through into the nonoil economy, although private sector growth is still strong.

The seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers’ Index dropped to 57.0 points last month from 58.3 points in April. A reading above 50 points indicates expansion and below 50, contraction.

Output growth dropped to a four-month low of 63.4 points from 64.2 points, while new order growth slid to 62.7 points, its slowest since September 2011. Employment growth fell to 52.1 points, a 10-month low.

Output price inflation climbed to a six-month high of 50.7 points while input price inflation rose to 53.7 points.