Saudi non-oil business activity hits four-month high as PMI rises to 53.3

RIYADH: Saudi Arabia’s non-oil private sector expanded at a four-month high in June, with the Purchasing Managers’ Index rising to 53.3 from 52.8, driven by stronger domestic demand and new orders.

The Riyad Bank Purchasing Managers’ Index, compiled by S&P Global, climbed to its highest level since February, signaling a solid improvement in operating conditions at the end of the second quarter. A reading above 50 indicates expansion.

The latest survey adds to signs that the Kingdom’s non-oil economy remains resilient as Saudi Arabia advances its Vision 2030 strategy to diversify away from oil, supported by stronger domestic demand despite continued weakness in export markets.

Naif Al-Ghaith, chief economist at Riyad Bank, said: “Saudi Arabia’s non-oil economy maintained a solid expansion in June, with the PMI rising to 53.3 from 52.8 in May, reflecting an improvement in business conditions across the private sector.”

He added: “Stronger output and the fastest increase in new orders in four months suggest that business activity regained momentum toward the end of the second quarter.”