Riyadh – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia rose to 59 in November 2024 from 56.9 last October, according to Riyad Bank’s latest data.
The reading reflected a strong performance at non-oil private sector firms in the penultimate month of the year, as businesses experienced the fastest rise in input costs in over four years.
PMI’s growth rate was the sharpest recorded since the middle of 2023 due to rising order books and a sharp increase in purchasing activity and employment.
Last month recorded stronger demand conditions, higher customer numbers, greater investment spending, and positive client reactions to marketing campaigns.
Businesses witnessed a hike in foreign sales, following a modest pull-back in the previous survey period. Hence, improving sales growth led non-oil businesses to hire additional staff in November, bringing the rate of employment growth to the second-quickest in just over ten years.
The wages also increased, posting the fastest pace of pay inflation in just over ten years.
Naif Al Ghaith, Chief Economist at Riyad Bank, commented: “The acceleration in purchasing activity and inventory expansion suggests businesses are gearing up for continued growth in demand, a reflection of the kingdom’s steady progress in broadening its economic base.”
“Additionally, employment growth indicates a rising capacity of non-oil sectors to absorb labour, further supporting socioeconomic objectives like increasing national employment,” Al Ghaith highlighted.
He elaborated: “Despite global economic uncertainties, the kingdom’s non-oil sector appears well-positioned to maintain its upward trajectory.”
