Riyadh – Mubasher: The Purchasing Managers' Index (PMI) in Saudi Arabia declined to 54.9 in January 2020 from 56.9 in December 2019, recording its lowest reading in more than a year, according to a recent report by Emirates NBD Research.
Although output saw growth at a similar pace to the previous month, records showed a slowdown in new order growth, resulting from a decline in new export orders for the second month in a row.
On the other hand, local Saudi demand appears to remain stable, the report further noted.
Meanwhile, the employment index declined to 50.2 in January, signalling almost no change in private-sector employment last month, while business optimism was the weakest since August 2018.
However, the majority of surveyed companies expect their output to be higher than it is now or at the same level.
The report identified geopolitical tensions in January, the outbreak of the coronavirus in China and uncertainty regarding its impact as external downside risks for business activity across the region.
