Riyadh – Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) registered 57.7 in October, indicating a sharp improvement in the non-oil private sector, according to IHS Markit.

October reading was however down from 58.6 in September, yet it signalled the second-highest record since the COVID-19 pandemic had started while being above the long-run series average.

Business conditions in the Kingdom’s non-oil economy maintained their strength at a rapid pace in October, as new orders increased sharply in line with the recovery of domestic demand from the pandemic.

The report indicated that business expectations for the coming 12 months have ticked down in October yet remained strong compared to the 2021 average.

Output levels in Saudi Arabia have expanded at the sharpest rate since December 2017, according to the PMI report.

Purchasing activity accelerated at the quickest rate in three months during October, backed by firms looking to support stock levels as new orders increased.

Employment numbers increased last month, maintaining the growth sequence seen in each month since April. However, the rate of job creation was marginal.

Input costs continued to rise solidly in October, while there was a much quicker mark-up in output prices compared to that seen in September and being the strongest recorded in more than 12 months.

IHS Markit Economist, David Owen, said: “The rate of purchase cost inflation sharpened during October, giving further signs that rising commodity prices are feeding through to firms' balance sheets.”

Owen added: “With confidence towards sales prospects running strong, businesses were able to pass on costs to customers with the quickest rise in output prices since August 2020."