Saudi PMI falls to 56.3 points in July: S&P Global

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Saudi Arabia’s Purchasing Managers’ Index (PMI) declined 0.7 points to stand at 56.3 in July, compared to 57.0 a year earlier, S&P Global said in its latest report.

Despite the decrease in the index, it was broadly consistent with the readings observed in 2022 so far, as the latest reading indicates an improvement in business conditions for the 23rd month in a row.

The non-oil businesses continued to see a marked uplift in activity during July, albeit with the rate of growth softening slightly from the end of the second quarter and posting below the survey trend.

The expansion was mainly related to increased sales, new projects, and greater marketing, the report pointed out.

New work grew significantly in July, the second-fastest upturn in eight months.

Businesses linked rising sales to both improving market conditions at home and strengthening export demand, as new foreign orders increased sharply and to the greatest extent since last November.

According to the report, firms continued to face a rapid increase in input costs though the rate of inflation edged lower in July, but was still the second quickest since August 2020.

Higher oil and material prices were the main drivers of inflation. In addition, staff wages rose at the most rapid pace since February 2018, the report stated.

*Change on a monthly basis