RIYADH: Saudi Arabia’s construction sector grew for a third straight month in July as new orders set a five-month high, but the headline index slipped to 55.2 from June’s highest. The seasonally adjusted alrajhi capital Saudi Construction Index compiled by S&P Global Market Intelligence eased from 56.3 in June but remained well above the 50 point mark separating expansion from contraction, registering its second highest reading since the survey began in January.
The General Authority for Statistics said in a report last month that the Business Confidence Index in Saudi Arabia increased by one point to 56.6 in June mainly due to optimism in the construction industry, which scored 57.8, higher than the industry sector at 55 and the services sector at 55.5.
The improvement noted in his firm’s findings was “supported by stronger new order growth, reflecting continued demand across the sector and the reactivation of previously delayed projects,” Sultan Al-Towaim, head of research at Alrajhi Capital, stated. Input costs continued to climb, although cost pressures eased over the month, he added. The Kingdom’s Construction Index registered 51.2 in May, up from 48.5 in April, mostly reflecting the impact of regional geopolitical concerns.
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