New orders boost Saudi private sector growth in August

      Published on Thursday, 7 September , 2017      176 Views     
New orders boost Saudi private sector growth in August

  • Business

The health of Saudi Arabia’s non-oil private sector continued to improve during August, with growth supported by sharp expansions in new orders and output, according to a new business survey.

Emirates NBD’s Saudi Arabia Purchasing Managers’ Index survey said international demand for Saudi products and services picked up, as highlighted by a renewed increase in new export orders.

It added that growth of staffing levels was sustained during August, as companies responded to greater capacity pressures by taking on extra staff.

Companies continued to face upward cost pressures, but their ability to fully pass on higher cost burdens to consumers was restricted by intensive competitive conditions. The rate of growth in inventories climbed to a record high, reflecting greater buying levels.

The headline seasonally adjusted Emirates NBD Saudi Arabia PMI edged up to 55.8 in August from 55.7 in July. This was consistent with the strongest improvement in operating conditions since April. However, the headline PMI remained below its long-run average (58.1).

Khatija Haque, head of MENA Research at Emirates NBD, said: “Saudi Arabia’s non-oil sectors expanded at a solid rate in August, with the headline PMI broadly unchanged from July.  The recovery in export orders helped boost overall new order growth to the fastest rate in four months in August, while output also showed a sharp rise last month.”

The upward movement in the headline index was supported by a sharper increase in new orders. The rate of growth in new work quickened to the fastest in four months. More projects and stronger underlying demand were cited by panellists as the key factors behind greater inflows of new business.

Despite softening from the preceding month, output grew sharply. Panellists attributed the rise in business activity to favourable economic conditions.

Companies observed a renewed expansion in new export orders during August. Growth was recorded for the second time in the past five months. Opportunities arising from new export markets were frequently linked by panellists to stronger international demand for Saudi Arabia’s products and services.

According to the survey, firms faced capacity pressures for the tenth successive month and raised payroll numbers accordingly. The rate of job creation slowed to the weakest since April, however.

Companies purchased greater quantities of inputs during August. As a result, inventories were accumulated at the sharpest rate in the survey history.

Firms faced higher cost burdens during August, with both purchasing prices and staff salaries rising further. Consequently, firms passed on higher input costs to consumers. However, the pace of output price inflation was only marginal.

Although the level of positive sentiment dipped to the lowest since October 2016, firms retained positive expectations over the 12-month outlook for output. Optimism was rooted in forecasts of further improvements in market demand.

Category Business | 2017/09/07 latest update at 12:48 AM
Source : | Photocredit :
Comments Add comment

Gulf Media

Related Articles

The editorial staff of Saudi Arabia Today would like to give all of its readers from Gulf and Saudi Arabia and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Saudi Arabia Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Saudi Arabia, the Gulf and the world.

Sponsored Publications

Custodian of the Two Holy Mosques receives GCC Secretary General King

Custodian of the Two Holy Mosques receives GCC Secretary General

The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud received here today the Secretary…

Saudi Arabia Underlines Harmony with UAE for Interests of their People, Region King

Saudi Arabia Underlines Harmony with UAE for Interests of their People, Region

The Saudi cabinet hailed on Tuesday the visit paid to the United Arab Emirates last week by Crown…

Saudi king hosts CIA chief Gina Haspel for talks King

Saudi king hosts CIA chief Gina Haspel for talks

Saudi Arabia’s King Salman hosted the Central Intelligence Agency’s director Thursday, state media said, after three people were…

Saudi Arabia, Palestinians Agree on Joint Business Council Events

Saudi Arabia, Palestinians Agree on Joint Business Council

Saudi Arabia and the Palestinians agreed on Thursday to establish a joint economic committee and a business council,…


Popular in GULF TV

PIRELLI “DREAMING” – THE CAL 2019 making of Full Version | Fashion Channel


A photographic tale of the aspirations of four women and their determination to achieve their goals, each one…

Latest videos in GULF TV







Science & Technology