Growth in Saudi Arabia's non-oil private sector continued at almost the same rate in July after accelerating in June to its fastest pace this year, a survey of companies showed on Sunday. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index edged down to 54.9 last month from 55.0 in June. A level above 50 indicates expansion.
Output growth slipped to 58.8 in July from 59.1, while growth of new orders was 58.5 against 58.7. Employment growth was unchanged at 51.1. "Firms saw inventories rise at the fastest rate this year in July, which may indicate some optimism about improving demand in the near term," said Khatija Haque, regional economist at Emirates NBD.
However, she added: "More than 18 percent of respondents expected their output to be higher in 12 months' time, down from more than 40 percent earlier in the year. Given the sharp rise in actual output and new orders in June and July, it is reasonable for expectations to be more modest going forward." Output price inflation turned negative in July for the first time in three months, with the index slipping to 49.9, while input price inflation declined slightly to 53.1.
Detailed PMI data are only available under licence from IHS Markit and customers need to apply for a licence.
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