RIYADH, 8 November – The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia rose to 57.2 in October 2022 from 56.6 last September, marking the strongest business outlook since January 2021.
The PMI, which was above the 50 mark, highlighted solid business conditions in the non-oil private sector economy during October 2022, according to Riyad Bank’s data.
The growth was derived by high demands and increasing new work inflows amid a hike in activity.
Firms witnessed enhanced domestic economic conditions and smooth inflationary pressures, which resulted in the most promising outlook for future output since the beginning of 2021.
Meanwhile, suppliers’ delivery times continued to curtail at the beginning of the fourth quarter (Q4) of 2022, enabling companies to expand their purchasing activity and inventories.
Naif Al Ghaith, Chief Economist at Riyad Bank, said: “Saudi Arabian non-oil businesses signalled a strong degree of confidence in future economic conditions in October.”
Al Ghaith noted: “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.”
He added: “At the same time, business activity and new orders rose sharply again, with firms seeing client demand strengthen at a robust rate. Over a third of survey respondents noted that new orders had increased since the previous survey in September.”
The Chief Economist elaborated: “This was helped by a softening of price pressures; input costs rose at the slowest pace since February, which translated into only a modest uptick in selling charges.” — Mubasher