Daijiworld Media Network - Riyadh 

Riyadh, Sep 3: Saudi Arabia’s non-oil private sector growth remained steady in August, with business activity expanding at a slightly faster pace compared to July, according to a survey released on Wednesday.   

The seasonally adjusted Riyad bank Saudi Arabia purchasing managers’ index (PMI) rose marginally to 56.4 in August from 56.3 in July, staying comfortably above the 50-mark that separates growth from contraction. 

“The slight increase signalled another month of steady growth, driven by improving demand conditions, a modest rebound in output growth, and further gains in employment,” said Naif Al-Ghaith, chief economist at Riyad bank. “Although activity growth has eased from the highs seen earlier this year, the underlying trend remains firmly positive.” 

The survey highlighted stronger demand conditions, with new order growth accelerating to its fastest rate in four months. New export orders also rebounded, supported by marketing efforts and collaborations within the Gulf cooperation council (GCC) region. The subindex for new orders climbed to 60.1 in August, compared with 59.7 in July. 

Employment continued to rise, though at a slightly slower pace, as firms expanded their sales teams and initiated fresh projects. Inventories also recorded the strongest growth in four months, in line with increasing orders. 
 
On the pricing front, companies raised their selling prices for the third consecutive month, while also facing sharp increases in input costs due to higher purchasing expenses and global inflationary pressures. 

Meanwhile, business confidence improved from a 12 month low seen in July. Firms expressed optimism over future output, signalling a more positive outlook for the kingdom’s non-oil economy.