Riyadh – Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) increased for the second month in a row during November 2022 to 58.5 from 57.2 last October, according to Riyad Bank’s data.

The PMI, which was above the long-run series average of 56.8, marked the highest reading since September 2021. It recorded another powerful improvement in business conditions across the non-oil economy last November, driven by a sharp expansion in business activity that was the fastest since August 2015.

The report showed that the growth in new orders accelerated to a 14-month high, leading to a hike in purchasing activity. However, job creation remained mild due to falling backlogs and robust capacity levels.

During November, non-oil firms continued to witness a sharp rise in new business, supported by enhanced economic conditions, growing client demand, and expanded investment.

The increasing demands enabled non-oil businesses to scale up their purchasing in November. Meanwhile, input buying surged at the second-fastest rate since August 2015, which led to firm growth in inventories.

Naif Al Ghaith, Chief Economist at Riyad Bank, said: "The Saudi economy is continuing its expansion in the non-oil sector in November, business conditions have improved across the board in light of rising demand.”

Al Ghaith noted: “Output levels have expanded at the fastest pace in seven years, driving cost pressures higher and resulting in increased prices charged to consumers.”

He added: “Improved business expectations were also observed as a result of the ongoing execution of Vision 2030 initiatives, which provided confidence to the outlook of future output of the non-oil activities.”