ALBAWABA – Saudi non-oil activity accelerated for the second month in a row in October, Riyadh Bank Saudi Arabia Purchasing Managers’ Index (PMI) survey showed Sunday, with new orders coming in to boost September’s expansion.
The seasonally adjusted PMI rose to 58.4 in October from 57.2 in September, well above the 50-point threshold separating growth from contraction.
According to Reuters, this is the highest reading since June.
New business expanded faster with the new orders subindex up to 66.1 in October, also at a four-month high, from 64.2 the month before.
The survey showed growth in output and new business spread across most sectors, including construction and manufacturing, Reuters reported, despite the slight slide in output growth.
Growth in output remained high but eased to 60.1, which is slightly below the long run trend.
"The surge in new orders signifies an expanding market and suggests that the non-oil sector is experiencing sustained growth and demand for its products," Riyadh Bank chief economist Naif al-Ghaith told Reuters.
More so, "the employment expansion is a promising sign for the Saudi economy, as it suggests a growing demand for labour and a potential improvement in the job market," he added.
The employment subindex also rose to a nine-year high, at 54.5 in October, up from 52.0 in September.
Creating jobs for citizens in an expanded private sector is a priority for the government as it implements a wide-reaching economic diversification plan known as Vision 2030 spearheaded by Crown Prince Mohammed bin Salman.
Under the vision, more than one trillion dollars were pumped into the Saudi construction boom, mining and minerals, tourism and industrial sectors, notwithstanding.
