RIYADH: Saudi Arabia’s Purchasing Managers’ Index hit at 57.2 in October, the strongest since January 2021, as the Kingdom's non-oil economy continues to expand driven by strong demand and rising new work inflows, according to a report.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index — formerly the S&P Global Saudi Arabia PMI — has marked the Kingdom as maintaining growth for the 26th successive month.
In September, Saudi Arabia’s PMI was 56.6.
According to S&P Global, readings above 50 mark growth, while those below 50 signal contraction.
“Saudi Arabian non-oil businesses signalled a strong degree of confidence in future economic conditions in October. The outlook for the next 12 months rose to its highest level since the beginning of 2021, as firms suggested that the current robust level of growth is likely to continue,” said Naif Al-Ghaith, chief economist at Riyad Bank.
He added: “At the same time, business activity and new orders rose sharply again, with firms seeing client demand strengthen at a robust rate.”
Improved market conditions and ongoing projects paved the way for flourishing output and new orders in terms of activity and sales in October 2022, according to the report.
Suppliers' delivery times proceeded to shorten at the start of the fourth quarter, aiding companies in raising their inventories and purchasing activity, while employment saw a modest increase.
Additionally, Saudi Arabia’s increasing demand from foreign markets promoted sales growth last month, while its new export order increase marked the sharpest rise in almost one year.
The report added that output rises took place in the manufacturing, construction, wholesale and retail and services sectors, with the sturdiest upturn recorded among goods producers.
Firms reported the slowest increase in the costs of inputs in eight months, where only 4 percent of partakers recorded higher expenses compared to the previous month.
“Output charges subsequently rose only modestly, with upticks led by wholesale & retail and services firms,” concluded the report.