Saudi PMI rises 4.5 points to 58.6 points, highest level in 12 years: IHS Markit

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The Purchasing Managers’ Index (PMI) in Saudi Arabia hit its highest level in 12 years, increasing 4.5 points to 58.6 points in September, compared to 54.1 points in August, according to IHS Markit.

The reading indicated a robust improvement in non-oil operating conditions since August 2015.

The growth rate for new businesses rose to its strongest level in seven years, the index compiler said in a report, noting that easing COVID-19 pandemic restrictions on activities and travel led to a strong increase in customer demand, helping companies expand production at the highest rate since May.

Expectations for future business activity improved to their strongest levels year-to-date, but employment growth remained weak as companies continued to report sufficient capacity levels.

In addition, companies were able to expand their inventories of inputs sharply, despite the softest increase in buying activity for six months. However, they were helped by reducing supplier lead times; meaning that inputs arrived more quickly after August data pointed to some delivery delays.

*Month-on-month change.