Job creation in Saudi’s non-oil private sector accelerated to a four-month high as business conditions improved, according to the latest Saudi Arabia Purchasing Managers’ Index (PMI) for July 2013.
Jointly issued by Saudi British Bank and HSBC, the index reflects the economic performance of Saudi’s non-oil producing private sector companies by monitoring a number of variables including output, orders, prices, stocks and employment.
The headline PMI for July stood at 56.6, signaling an overall improvement in the Kingdom’s non-oil economy. However, the rate of improvement was low.
Overall expansion remained high with 24 per cent of companies reporting growth in activity. Despite an increase in output during July, the rate of expansion reduced for the third month in a row.
Input prices in the Kingdom’s non-oil producing private sector increased further in July with survey respondents linking the price hike to general economic pressures and rising raw material prices.
Despite a rise in costs, charges dropped marginally thanks to increasing market competition.
Owing to an improvement in sales teams and good economic conditions, new order intakes rose in July, found the index. Buying activity also rose markedly in July with 32 per cent of companies acquiring additional raw materials and semi-finished goods. Respondents attribute increased purchasing activity to a rise in business.