- Since November 2017, the highest ever recorded for the first-ever time in 18 months, the Emirates NBD PMI (Purchasing Manager’s Index) for Saudi Arabia surged up to 57.4 in June, up to the ante from 57.3 as recorded in May.
- According to a New Business survey, Saudi Arabia’s non-oil private sector growth has amassed to smash its best-ever record ending up on a 19-months highest surge in the new work stature as well as output.
Basking upon a great optimism on Business Confidence towards better future growth prospects in May-June period, The Emirates NBD Purchasing Managers’ Index (PMI) for Saudi Arabia rose to 57.4 in June, up from 57.3 in May and it’s highest since November 2017.
Despite it eased up to a 10-month low, under 39 percent of the respondents forecasted with optimism towards a more significant and better business activity over the upcoming 12-months. The prolific evidence predicted the firms, start-ups, and business majors across the region to be showing optimism towards the impact of future business investment and new project success.
The Head of MENA Research at Emirates NBD, Khatija Haque stated, “The June’s surveyed data pointed out a bit change away from the May’s readings, with the headline PMI (Purchasing Manager’s Index), just frictionally higher backed by a slightly faster newer work growth.”
“Even though during June, both the output as well as newer work rate increased at solid and much rapid rate, private sector employment showed no signs of change. As well, although, the level of optimism among the private sector firms regarding the future output surged ahead, it was still at its lowest level since August 2018, reflecting possibly the heightened geopolitical tension across the region.”
The contrasting report hit in regard with headline PMI and caught everyone’s attention instantaneously as output growth in Saudi Arabia’s non-oil private sector slowed to a three-month low during June, while the rate of expansion saw much better-sharpened curve and broadly being in line with long-run series average.
The latest in series of this survey data also predicted a robust accelerated phase in the newer businesses growth for businesses in Saudi Arabia’s non-oil private sector. With June’s improved measured statistics as for the fastest rate of expansion ever marked in three months, inflows of new orders from the abroad also surged ahead for the fourth ever consecutive month running in tandem.
Partly thanks to a rise in new order inflows, non-oil private sector businesses enlarged their payroll numbers throughout June month. However, the speed of job creation was still marginal and slowed from May’s four-month high.
June saw a second consecutive monthly rise in average cost price burdens faced by non-oil private sector businesses. Despite this, the speed of inflation was divisional and eased away from May. Anecdotal proof from respondents indicated that price cutting war among suppliers had acted as a restraint on the cost burdens.
Reflecting stronger new business growth, firms ramped up their input shopping for at a marked pace throughout June. However, the speed of growth soothed down from May’s 17-month high.