Saudi Arabia's non-oil sector continues to expand: IHS Markit

Saudi Arabia's non-oil private sector remained on a growth footing in December 2019, with business activity, new orders and employment all expanded since the previous month, according to the Purchasing Managers’ Index (PMI) data released by IHS Markit on Sunday.

While the headline slipped to 56.9 in December, from 58.3 in November, total new business volumes increased sharply in December.

“The survey continues to indicate a much stronger improvement in business conditions than at the same time during 2018, particularly in relation to new order books,” Tim Moore, Economics Associate Director at IHS Markit, said.

Employment numbers increased for the ninth consecutive month across the non-oil private sector, albeit at only a marginal pace.

The survey further noted that input buying expanded at a robust and accelerated pace in December.

“Higher levels of purchasing activity were linked to new order intakes and efforts to boost inventories,” it added.

The survey further noted that Saudi non-oil private sector companies remain optimistic about their growth prospects for the next 12 months.

“The degree of positive sentiment slipped a little since November, but remained comfortably above the levels seen in the middle of 2019,” it also said.