According to a research, June saw strong growth in Saudi Arabia’s non-oil private sector, driven by rising output levels, rising employment, and improved demand.
The Riyad Bank Saudi Arabia PMI steadied at 55 from 56.4 in May, according to the most recent S&P Global Purchasing Managers’ Index, which was the lowest figure since January 2022.
Non-oil companies recorded a significant increase in output despite the slowdown in new orders, which had the weakest growth in almost two and a half years. This helped the Kingdom lead the region with the strongest expansion figures.
In response to sustained sales and projects, businesses increased their output, indicating a favorable business climate.
“The PMI for the non-oil economy recorded at 55.0 in June, marking the slowest pace of expansion since January 2022,” stated Naif Al-Ghaith, chief economist at Riyad Bank. The component for new orders decreased from the prior month, indicating a minor slowdown in the increase of demand.
“However, a strong increase in output levels supported the growth in non-oil sectors,” he continued. Additionally, employment increased as suppliers’ supply schedules got better.
The growth statistics for the second quarter show that Saudi Arabia’s non-oil GDP is likely to expand by more than 3 percent, which is a favorable prognosis.
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