Saudi PMI up to 59.6 pts in June

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly the S&P Global Saudi Arabia PMI, rose to 59.6 points in June 2023.  

The non-oil private sector expanded sharply during the month, as both output and new orders rose at accelerated, multi-year record rates. In response, firms boosted their purchasing activity at the fastest pace in the survey’s history as they sought to meet higher business requirements and bolster stock.  

Despite its high reading, the index somewhat didn’t reflect the considerable improvements in both output and new orders. Latest data showed that output rose at the steepest rate since March 2015, while sales growth was the strongest for nearly nine years, the index compiler said. 

Firms responded positively to the upward trends in activity and sales by concurrently increasing their purchasing activity at a survey record rate. Companies also sought to bolster stocks to prepare for expected growth in the coming months, with the rate of inventory accumulation reaching a ten-month high. 

Confidence in the outlook remained positive, rising to its highest since January. Anecdotal evidence suggested that firms expect to benefit from government backed investment and infrastructure projects over the coming year.

Constructors were particularly optimistic, the report added. 

The PMI is a weighted average of the following five indices: