Saudi Arabia: Non-oil PMI falls in July
The Riyad Bank Saudi Arabia non-oil PMI dropped to 54.4 in July from 55.0 in June. 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.
Output growth eased to a six-month low, and the upturn in new business was the least marked in two-and-a-half years. Despite these challenges, demand conditions remained generally favorable, driving higher sales and improved output across sectors. The survey highlighted that increased client demand and marketing efforts contributed to higher output, although competitive pressures and challenging weather conditions, such as a heatwave, dampened growth.
On the topic of prices, selling prices fell at the fastest pace since the survey began in 2009, amid growing competition and marking the first decline in nine months. This was despite a solid rise in input costs, including both purchase prices and wages. Finally, business confidence wavered, with the outlook for the year ahead being only mildly upbeat.