Mubasher: Saudi Arabia’s non-oil private sector growth slowed in October, with business conditions improving at the weakest pace in history, according to a statement.
The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) fell to a survey-record low of 53.2 in October from 55.3 in September. That showed a second successive slowdown in growth following August’s 12-month high (56.6).
“The decline in the Purchasing Managers’ Index in October was not unexpected, given the additional fiscal measures that came into effect last month including public sector wage cuts,” according to Emirates NBD Saudi Arabia PMITM, Khatija Haque, head of MENA Research at Emirates NBD.
“External demand also softened further last month. However, the PMI reading remains well above the neutral 50.0 level, indicating growth in the non-oil sector, albeit at a slower rate than last year,” Haque added.
The sector growth slowdown is mainly attributed to weaker expansions in output and new business which rose to the least extent since the survey began in August 2009.
Growth of purchasing activity eased to a four-month low in October, but remained faster than that seen for output and new work.
