Saudi Arabia: Non-oil private business activity remains upbeat in July
The Riyad Bank Non-oil Purchasing Managers’ Index (PMI) fell to 57.7 in July from June’s 59.6. July’s result marked the weakest reading since December 2022, but remained above the long-term average. As a result, the index remained entrenched above the 50.0 no-change threshold, signaling a softer, albeit still strong, improvement in non-oil private sector operating conditions from the previous month.
Output and new orders continued to expand at quick paces, despite slowing from the past month. In addition, employment continued to grow. Meanwhile, input inflation eased, which in turn caused output prices to fall for the first time in over two years. Finally, business sentiment remained optimistic amid continued support from the government’s diversification policies.