Riyadh – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia fell from 55.8 in July to 54.1 in August.

The reading indicated a solid improvement in the non-oil private sector, which was the slowest in five months, according to HIS Markit report on Sunday.

The main reason behind the 1.7-point drop in August PMI was a decrease in the output index, which hit the lowest level since October 2020.

Commenting on the latest survey results, Economist at IHS Markit, David Owen, said: “Whilst domestic orders remained strong and firms saw an upturn in tourist numbers, many businesses continued to find market conditions challenging amid the pandemic. That said, demand momentum is still largely on the upside, with nearly three times as many firms seeing a rise in new orders as those registering a fall.”

Employment growth continued to be low while stocks of purchases rose at the slowest pace since last October. Output charges yet increased at the strongest rate for a year despite only a modest uptick in input costs.

Owen added: "Job creation disappointed again in August, due to a further fall in backlog volumes and a subdued outlook for future activity. Whilst firms expect an improvement in domestic business conditions in the coming months, the unpredictability of the pandemic meant that downside risks remained high."