Saudi non-oil growth hits seven-month high in September, PMI shows

By Reuters News

Oct 5 (Reuters) - Saudi Arabia's non-oil private sector expanded in September at its fastest pace since February as domestic demand strengthened and hiring picked up, a business survey showed on Monday.

  • The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 55.3 in September from 53.8 in August, a survey by S&P Global showed. The 50-mark separates growth from contraction.

  • Output growth eased to a 5-month low after reaching a seven-month high in August, while new orders rose at the quickest pace since February.

  • Export demand remained weak. New orders from foreign clients fell for a seventh straight month.

  • Employment growth strengthened to a seven-month high as firms expanded sales teams and recruited technical staff.

  • Supply chain pressures persisted, with suppliers' delivery times improving only marginally at the softest pace in five months.

  • Firms raised selling prices at the second-fastest rate in more than six years as material and transport costs stayed elevated.

  • Companies were less upbeat about the year ahead, with the Future Output Index falling to its lowest since March amid concerns about regional tensions and further supply-chain disruption.

  • "The September results are broadly consistent with the wider picture of the Saudi economy, where domestic consumption, investment activity, government and PIF-related projects, and continued credit availability remain important supports for non-oil activity," said Naif Al-Ghaith, Chief Economist at Riyad Bank.

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