Riyadh - Mubasher: Saudi Arabia's non-oil private sector plunged in June 2020 as business operations remained disrupted with a subdued customer demand amid the coronavirus (COVID-19) pandemic.  

The headline seasonally adjusted Saudi Arabia Purchasing Managers' Index (PMI) slid to 47.7 in June, compared to 48.1 in May, below the 50-point mark that separates growth from contraction, a report by IHS Markit revealed on Sunday.

The fall in the June headline PMI was primarily ascribed to faster reductions in business activity, new work, and employment.

The June data is a setback for the non-oil private sector as the business activity has fallen at a faster pace than in May, though less severe than in April. 

Additionally, weak demand conditions, coupled with concerns about the near-term outlook resulted in a dip in employment numbers.

"June data highlighted another difficult month for Saudi Arabia's non-oil private sector economy, with cautious business and consumer spending patterns widely reported to have held back new order intakes,” commented economics director at IHS Markit, Tim Moore.

Moreover, the June figure showed that year-ahead business expectations turned negative for the first time since July 2012 when this index began, although the degree of pessimism was only marginal.