Saudi June PMI shows fastest business conditions improvement in 19 months

Saudi Arabia’s Purchasing Managers’ Index (PMI) for June signaled the fastest improvement in business conditions across the Kingdom’s non-oil private sector for 19 months, according to the latest survey by Emirates NBD released on Wednesday.

Emirates NBD Saudi Arabia PMI posted 57.4 in June, up from 57.3 in May and the highest since November 2017.

The rate of overall new order growth quickened from May to a three-month high. Meanwhile, business confidence among non-oil private sector firms eased to the lowest in ten months, but nonetheless was strongly positive.

In contrast to the headline PMI, output growth in Saudi Arabia’s non-oil private sector slowed to a three-month low during June. That said, the rate of expansion remained sharp and was broadly in line with the long-run series average.

The latest survey data saw an acceleration in new business growth at businesses in Saudi Arabia’s non-oil private sector.

The rate of expansion was marked, with June’s improvement the fastest in three months. Furthermore, inflows of new orders from abroad rose for the fourth month running.

Business confidence towards future growth prospects was strongly optimistic during June. Despite easing to a ten-month low, just under 39 percent of respondents forecast greater business activity over the coming 12 months.