Saudi PMI stands at 57 points in June: S&P Global

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Saudi Arabia Purchasing Managers’ Index (PMI) rose nearly 1.3 points to reach 57 points in June, compared to 55.7 points a year earlier, S&P Global said in its latest report.

Accordingly, the PMI hit its highest since October 2021, higher than the long-term series average of 56.8 points.

According to the report, S&P Global noted strong improvement in business conditions at the level of Saudi Arabia’s non-oil private sector economy in June, as the volume of new business rose to its highest level in eight months, despite evidence that increasing cost pressures may have pushed companies to raise their prices.

Input cost inflation was at its highest in 22 months, as global supply challenges led to the continued rise in fuel and raw material prices.

The business conditions improved amid the hike of new order flows, S&P Global stated, adding that the sales growth rebounded for the second straight month. In addition, the new export orders grew strongly in June, as companies witnessed a noticeable increase in foreign demand, and the latest recovery was generally the highest in seven months.

Non-oil producing companies showed more optimism about future activity in June, as confidence rose to its strongest level since 2021. The positive outlook led to further increase in employment and accumulation of goods inventory that faces short supply, according to the report.