Riyadh – Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) remained unchanged at 57.5 in December 2023 when compared to November a month earlier, according to Riyad Bank’s latest data.

The reading marked an improvement in operating conditions across the non-oil economy, as Saudi non-oil firms continued to witness a substantial uplift in activity levels during December.

Businesses mainly attributed the expansion in output to the higher new business inflows, which increased at the sharpest rate since June.

Additionally, the pace of sales growth was among the quickest registered in the past nine years.

Non-oil companies bought more inputs amid a remarkable increase in overall purchases. This supported a sharp and faster rise in stock levels than in November.

Meanwhile, the rate of employment growth in the non-oil private sector eased further after hitting a nine-year record in October.

Business conditions continued to enhance sharply across the Kingdom’s non-oil private sector at the end of 2023.

New orders also witnessed a growth in activity, as companies registered the fastest rate of sales growth since June.

Naif Al Ghaith, Chief Economist at Riyad Bank, commented:  “This positive employment outlook reflects the success of the government's efforts to create a diverse and robust economy, offering job opportunities and improving the standard of living for its citizens.”

“The positive performance of the non-oil sector throughout 2023 has exceeded the expansion witnessed in the previous year, further demonstrating the effectiveness of policies aimed at reducing dependence on oil revenues,” Al Ghaith mentioned.

He concluded: “ The positive expansion in PMI as we near the end of the year is a promising sign for the country's economic diversification efforts.”