Saudi Arabia: Non-oil PMI falls in June
The Riyad Bank Saudi Arabia PMI fell to 55.0 in June from 56.4 in May. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in non-oil private-sector operating conditions compared to the previous month.
The decline was primarily attributed to a softer increase in new order volumes, marking the slowest growth in nearly two-and-a-half years. Despite this slowdown, non-oil businesses experienced a substantial rise in output, supported by the fastest increase in export sales in 2024 so far offsetting slower domestic demand. Additionally, there was a modest increase in employment and a continued, albeit slower, rise in purchasing activity as firms adjusted their inventory levels in response to previous stockpile surges.
On the pricing front, input costs rose at the fastest pace in four months, driven by higher wages, material costs and technology expenses. Despite these cost pressures, the rate of charge inflation remained subdued due to discounting strategies. Finally, business sentiment improved slightly in June, despite remaining low by historical standards.