RIYADH: Saudi Arabia’s construction sector expanded for a third consecutive month in July as new orders hit a five-month high, although the headline index eased to 55.2 from June’s peak.
The seasonally adjusted alrajhi capital Saudi Construction Index, compiled by S&P Global Market Intelligence, slipped from 56.3 in June but remained comfortably above the 50-point threshold separating expansion from contraction, marking its second-highest reading since the survey began in January.
Last month, a report released by the General Authority for Statistics revealed that Saudi Arabia’s Business Confidence Index climbed 1 point to 56.6 in June, primarily driven by optimism in the construction industry, which recorded a reading of 57.8, higher than the industry sector at 55 and the services sector at 55.5.
Sultan Al-Towaim, head of research at alrajhi capital, said the improvement seen in the his firm’s findings was “supported by stronger new order growth, reflecting continued demand across the sector and the reactivation of previously delayed projects.”
He added: “While input costs continued to rise, cost pressures eased during the month.”
