Saudi PMI stands at 55.7 points in May: S&P Global

The Kingdom of Saudi Arabia's flag

Saudi Arabia Purchasing Managers’ Index (PMI) stood at 55.7 points in May, the same as April, S&P Global said in its latest report.

The latest reading indicates that the Saudi Arabian non-oil private sector is witnessing a robust improvement in May, S&P added, noting that business conditions enhanced in each of the past 21 months. However, the latest reading is lower than the long-term series average of 56.8 points.

Private sector’s production continued to grow sharply in mid-Q2, although it was the lowest level since January, while many companies reported an increase in sales and improved demand conditions.

According to the report, business conditions continued to improve, while non-oil companies faced a hike in fuel, materials, and freight prices in May in line with strong global inflationary pressures.

In addition, input costs rose at the second-fastest pace in a year and a half, only preceded by the increase recorded in March following Russia-Ukraine war.

Business activity’s outlook for the coming year rebounded for the first time in three months during May; however, it remained weak compared with historical standards.

Only 11% of companies expected growth, amid continuing uncertainty about global inflation, the pandemic, and Russia-Ukraine war.