Saudi non-oil business activity lifted by stronger demand in Nov, PMI shows
12:18 am Tuesday, December 03rd, 2024
ABU DHABI (Reuters) – Saudi Arabia’s non-oil business sector grew in November at the fastest rate since July 2023 thanks to robust demand, a business survey showed on Tuesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index surged to 59.0 from October’s 56.9. It was the fourth consecutive monthly rise in the headline PMI, which remained well above the 50.0 mark denoting growth.
The new orders subindex increased to 63.4 in November from 62.5 the previous month, supported by growth in customer bases and increased investment spending, according to respondents.
“This robust expansion, marked by accelerated output and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independently of oil price fluctuations,” Naif Al-Ghaith, Riyad Bank’s chief economist said.
The output subindex rose to 63.8 in November from October’s 60.2. Firms also added jobs at a faster rate in November than the previous month.
Saudi Arabia is forecasting a fiscal deficit of $27 billion in 2025 as it pushes ahead with strategic spending on projects linked to Vision 2030, the kingdom’s ambitious plan to overhaul its economy and bolster non-oil growth, even as lower oil prices weigh on revenue.
Businesses’ confidence about the 12-month outlook was down from October but broadly in line with the 2024 year to date average.
(Reporting by Rachna Uppal; Editing by Hugh Lawson)
