Riyadh – Mubasher: Saudi non-oil private sector kept on growing in September, although the rate of improvement in business conditions retreated compared to the previous years.
Despite the rate of hiring eased, although output rose sharply again, the sector’s latest rise was among the least marked ever recorded by a survey done by IHS Markit research company under the auspices of Emirates NBD.
Prices data indicated that sector conditions were tightening. Both charges and purchase costs decreased amid intense competition, the latter falling for the first time in the series history.
“Saudi Arabia’s PMI eased only slightly in September, on weaker new order growth. However, the average PMI for Q3 2016 points to a faster rate of expansion in economic activity compared to the first half of this year. Recent announcements on spending cuts in the Kingdom are likely to weigh on household consumption and consumer confidence however, as we head into Q4,” Khatija Haque, Head of MENA Research at Emirates NBD, said.
The survey showed that the Saudi Arabia Purchasing Managers’ Index™ (PMI) recorded 55.3 points in September, to fall to its lowest reading of the third quarter of 2016, down from August’s one-year high of 56.6, the latest figure was well below the long-run trend (58.5).
The average growth during the third quarter reached 55.9 points and was the strongest since Q3-15.
