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Saudi Arabia’s July PMI slows to 56.3

Saudi Arabia’s July PMI slows to 56.3
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Riyadh – Mubasher: The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) stood at 56.3 in July 2022, marking an improvement in business conditions for the twenty-third consecutive month.

Despite levelling down from 57.0 in June 2022, the index was broadly consistent with the readings observed this year so far, according to a press release on Wednesday.

The Saudi non-oil private sector continued to see a marked uplift in activity in July, driven by increases in customer numbers, output, and purchasing.

Firms in the GCC state were encouraged to raise their employment levels further last month, as new orders increased rapidly. Furthermore, the pace of job creation was the quickest since September 2019, hence work backlogs decreased sharply.

Economist at S&P Global Market Intelligence, David Owen, wrote: "New business continued to rise substantially, helped by recovering demand and strengthening export sales. As a result, output expanded sharply and employment numbers rose at the fastest pace since September 2019, following a period of weakness in labour markets since the COVID-19 pandemic began.

"Firms continued to face pressure from sharply rising input costs, however, with the rate of inflation staying strong despite easing from June. Output prices rose solidly which could impact market demand going forward as global inflationary pressures also persist," Owen added.