Growth in Saudi Arabia’s non-oil private sector accelerated to an eight-month high in July, suggesting the economy might be stabilising after a slowdown due to low oil prices and state spending cuts, a survey showed.
The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index, published on Wednesday, climbed to 56.0 last month from 54.4 in June. The 50-point mark separates expansion from contraction.
“July’s survey is encouraging as it suggests Saudi Arabia’s non-oil economy continues to expand at a healthy clip,” said Jean-Paul Pigat, senior economist at Emirates NBD.
“Growth momentum is slower than last year, but is holding up better than many had expected in an environment of low oil prices.”
Output growth rose sharply in July to 63.3 from 58.6, while growth in new orders climbed to 59.0 from 57.9. Employment growth also accelerated.
Output price inflation slowed to very low levels in July while input price inflation dropped slightly.
Follow The National’s Business section on Twitter