Saudi private-sector growth marginally slower

Growth in Saudi Arabia's non-oil private sector slowed slightly in September as expansion of new orders lost steam, a corporate survey showed on Tuesday. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index edged down to 55.5 last month from 55.8 in August. A level above 50 means business is expanding.
New order growth dropped to 59.6 from 60.3, although output growth accelerated to 62.4 from 61.9. Employment continued to increase at the same modest pace. "The PMI for Saudi Arabia has been relatively stable in Q3, signalling a solid expansion in non-oil sector growth last quarter," said Khatija Haque, head of regional research at Emirates NBD. "While output and new order growth has remained strong, external demand was softer compared to a year ago, as was employment growth." She added: "The announcement of key reforms and a successful $12 billion debt issue (by the government) in late September should have a positive impact on both sentiment and business activity in the coming weeks."