Riyadh – Mubasher: Saudi non-oil private sector has rebounded in November, following a back-to-back slowdown in September and October, according to a study done by HIS Markit, under the sponsorship of Emirates NBD.
Output, new orders, purchasing activity and input stocks all rose sharply and at faster rates than in the previous month, however, the expansions remained weaker than their respective averages. Subsequently, the majority of firms left employment unchanged, with the rate of hiring picking up slightly but remaining only modest, said the report.
The study noted that, at the same time, total input costs rose at the fastest pace since August, which led to the increase in products and services' prices after falling for two consecutive months.
“All components of the Saudi PMI increased in November, with output and new orders rebounding strongly from October. This is consistent with other evidence showing non-oil sector activity recovering last month, following the Kingdom’s first international debt issue in late October,” Khatija Haque, Head of MENA Research at Emirates NBD, commented.
The headline seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) levelled up to 55 points in November, after having fallen to a survey-record low of 53.2 points in October.
The index's latest reading was broadly similar to the average over 2016 to date (54.8), and signalled a further robust improvement in business conditions, according to the study.
November saw a rebound in output growth at Saudi Arabia’s non-oil private sector firms. The rate of expansion had eased to its weakest levels since the start of the study in the fourth quarter, but accelerated to a marked pace in the latest period.
New business also rapidly increased, with the respective index hitting a three-month high.
Panel reports indicated that better marketing had helped secure new clients. Data showed that the rise in total new work was reinforced by an improvement in foreign demand, however, export growth remained only moderate.
