Saudi private sector growth hits 2018 high in November

By December 10, 2018News

The Saudi economy is showing signals that it is recovering from the austerity measures imposed earlier this year with the non-oil private sector showing significant growth.

The Emirates NBD Purchasing Managers’ Index (PMI) saw growth of 1.4 points from October, 53.8, to November, 55.2. However, the PMI in November is below the series average of 57.7 and the year-to-date average figure is below the same period for 2017, indicating a relatively soft rate of expansion by historical standards.

Khatija Haque, head of MENA Research at Emirates NBD, said: “Both output and new orders increased at a faster rate in November, and while new export order growth was firmer in November than it has been in recent months, it remained sluggish.

Helping drive the upturn was stronger demand for goods and services, mainly continuing to come from the domestic market, with new export orders rising only marginally and at a much slower rate than the total new business.

After having reached a six-month low in October, the output growth in November was the second-fastest recorded in 2018.

The latest survey indicated a monthly increase in employment with some firms confirming hiring additional staff in marketing positions to increase sales.

There were insignificant changes in purchase costs and average staff pay. Due to low demand for new staff and low competition among suppliers, this helped constrain inflationary pressures.