Saudi Arabia's non-oil private sector business activity expanded at its fastest rate in 10 months in November, driven by robust demand and increased hiring, although new order growth slowed from the previous month, a survey showed on Wednesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index slipped to 58.5 in November from 60.2 in October, but remained well above 50, signalling strong activity growth.
The output subindex jumped to 63.7 in November, the highest reading since January, and new orders continued to rise, albeit at a slower pace than October's peak, with domestic demand particularly strong.
The new orders subindex slipped to a reading of 64.6 in November after surging to 68.1 the month before. Export orders increased for the fourth consecutive month, though growth was marginal.
Employment growth slowed from October's near-record high but remained robust, with firms expanding staffing to meet higher demand and rising unfinished business. Backlogs of work increased for the fifth month, marking the longest accumulation since 2019.
"Looking ahead, confidence is being supported by anticipated improvements in demand, active pipelines of new projects and ongoing investment activity," said Naif Al-Ghaith, Riyad Bank's chief economist.
Non-oil sector firms expressed optimism for future activity, buoyed by anticipated demand growth and new projects. The survey indicated a positive outlook for the sector, driven by healthy demand pipelines and business investment.
Saudi Arabia, the world's top oil exporter, is investing heavily to develop and grow its non-oil sectors to reduce its reliance on hydrocarbons as part of an ambitious economic strategy known as Vision 2030.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index slipped to 58.5 in November from 60.2 in October, but remained well above 50, signalling strong activity growth.
The output subindex jumped to 63.7 in November, the highest reading since January, and new orders continued to rise, albeit at a slower pace than October's peak, with domestic demand particularly strong.
The new orders subindex slipped to a reading of 64.6 in November after surging to 68.1 the month before. Export orders increased for the fourth consecutive month, though growth was marginal.
Employment growth slowed from October's near-record high but remained robust, with firms expanding staffing to meet higher demand and rising unfinished business. Backlogs of work increased for the fifth month, marking the longest accumulation since 2019.
"Looking ahead, confidence is being supported by anticipated improvements in demand, active pipelines of new projects and ongoing investment activity," said Naif Al-Ghaith, Riyad Bank's chief economist.
Non-oil sector firms expressed optimism for future activity, buoyed by anticipated demand growth and new projects. The survey indicated a positive outlook for the sector, driven by healthy demand pipelines and business investment.
Saudi Arabia, the world's top oil exporter, is investing heavily to develop and grow its non-oil sectors to reduce its reliance on hydrocarbons as part of an ambitious economic strategy known as Vision 2030.
