Mubasher: The improvement in Saudi Arabia’s non-oil private sector was maintained at a steady rate in June; however, on the price front, input costs grew to the greatest level in seven months, contributing in turn to a first increase in charges since October 2015, according to a survey produced by Markit, the financial information and services company, and sponsored by Emirates NBD.
The Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) is “a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil private sector economy”, according to the survey.
Emirates NBD Saudi Arabia PMI posted 54.4 in June, down slightly from 54.8 in May. The latest reading rounded off a second quarter which saw moderate growth of 54.5 in line with the average, 54.4, recorded in 2016 to date, the survey added.
“However, the improvement in business conditions remained subdued when compared to the long-run series trend (58.6).”
The kingdom’s both output and new orders continued to increase sharply in June. However, while output growth eased to a 32-month low, the rate of expansion in new work was changed slightly from May’s five-month high.
“Despite the expansion of total new work, exports remained an area of concern midway through 2016. New business from abroad fell for the third successive month, having previously risen back-to-back since the survey began in August 2009. That said, the latest reduction was only marginal.”
The pace of job creation remained subdued in June, Markit said, adding that the latest rise, which was among the weakest posted by the survey, continued a trend seen throughout Q2.
“The rate of purchase price inflation quickened to an eight-month high, but was still muted compared to the long-run average. Nonetheless, for the first time since last October, the rise in costs was sufficient to lead to increased charges,” Markit’s survey noted.
