The Saudi British Bank (SABB) has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™) for October 2014 – a monthly report issued by the bank and HSBC.
It reflects the economic performance of Saudi Arabian non-oil producing private sector companies through monitoring a number of variables, including output, orders, prices, stocks and employment.
Saudi Arabia’s non-oil private sector continued to grow markedly in October, despite the rate of growth easing sharply on September’s 39-month peak. After accounting for seasonal factors, the headline SABB HSBC Saudi Arabia PMI recorded 59.1, down from 61.8 in the previous month and led lower by reduced contributions from the new orders, output and stocks of purchases components.
Latest data showed that output increased during October at a sharp pace, but was restricted by competitive pressures and signs of slower market demand. While new orders continued to rise markedly, there were reports that demand was rising to a lesser extent than seen in previous months, both at home and abroad.
The net impact was that both output and total new work rose at their slowest rates for five months in October. Foreign sales increased to the weakest extent since June.
Although growth rates were lower, capacity continued to be tested as signalled by another marked increase in backlogs of work. Growth of work outstanding was only slightly down on September’s high, with higher new orders and a lack of resources at units amongst the factors driving backlogs higher.
Companies responded by adding numbers to their payrolls in October. Latest data showed that staffing levels rose to the greatest degree since September 2012 with over 12% of the panel indicating a rise in employment. Expectations of further growth also encouraged companies to boost employee numbers over the month.
As additional staff were taken on, companies also chose to increase average salaries. October’s survey indicated the sharpest increase in overall staff costs in the survey history.
Employees reportedly benefited from higher pay due to an increase in new work and the start of new projects.
It reflects the economic performance of Saudi Arabian non-oil producing private sector companies through monitoring a number of variables, including output, orders, prices, stocks and employment.
Saudi Arabia’s non-oil private sector continued to grow markedly in October, despite the rate of growth easing sharply on September’s 39-month peak. After accounting for seasonal factors, the headline SABB HSBC Saudi Arabia PMI recorded 59.1, down from 61.8 in the previous month and led lower by reduced contributions from the new orders, output and stocks of purchases components.
Latest data showed that output increased during October at a sharp pace, but was restricted by competitive pressures and signs of slower market demand. While new orders continued to rise markedly, there were reports that demand was rising to a lesser extent than seen in previous months, both at home and abroad.
The net impact was that both output and total new work rose at their slowest rates for five months in October. Foreign sales increased to the weakest extent since June.
Although growth rates were lower, capacity continued to be tested as signalled by another marked increase in backlogs of work. Growth of work outstanding was only slightly down on September’s high, with higher new orders and a lack of resources at units amongst the factors driving backlogs higher.
Companies responded by adding numbers to their payrolls in October. Latest data showed that staffing levels rose to the greatest degree since September 2012 with over 12% of the panel indicating a rise in employment. Expectations of further growth also encouraged companies to boost employee numbers over the month.
As additional staff were taken on, companies also chose to increase average salaries. October’s survey indicated the sharpest increase in overall staff costs in the survey history.
Employees reportedly benefited from higher pay due to an increase in new work and the start of new projects.
Source:
Mubasher
