Saudi PMI down to 57.7 points in October; business conditions of non-oil economy continue to improve: IHS Markit

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The Purchasing Managers’ Index (PMI) in Saudi Arabia declined by nearly 0.9 points to 57.7 points in October, from 58.6 points in September, according to IHS Markit.

The reading indicates a sharp improvement in the non-oil private sector. Despite slipping from 58.6 in September, the reading was the second-highest recorded since the start of the COVID-19 pandemic and above the long-run series average.

Business conditions in the Saudi non-oil economy continued to strengthen at a rapid pace in October. New orders rose sharply as domestic demand recovered from the pandemic, with the rate of growth remaining close to September's seven-year high. Notably, output levels expanded at the sharpest rate since December 2017.

According to latest PMI data, the 0.9-point fall in the headline PMI was largely driven by the new orders sub-index, which dropped from its seven-year high in September but was still indicative of a substantial rise in sales.

Non-oil companies reported a marked expansion in output during October. The rate of growth accelerated from the previous month to the strongest since the end of 2017. This helped firms to keep on top of new work and reduce their backlogs.