Saudi Arabia’s construction sector continued to expand in September, although growth slowed to its weakest pace in four months as the Al Rajhi Capital Saudi Construction Index fell to 54.4 points from 55.4 in August.
The latest reading extended the sector’s growth streak to five consecutive months, with all three subsectors recording increased business activity. Residential construction and infrastructure remained among the strongest performers, supported by favorable market conditions and demand linked to major construction projects, according to Argaam.
Infrastructure activity rose to 55.8 points, its second-highest reading since the survey began in January, while residential construction reached 56.6 points. Non-residential construction expanded more modestly at 50.9 points, its lowest growth rate since May.
Construction companies also reported higher new business for the fifth consecutive month, although the pace of growth was the slowest since May. Some firms cited slower customer decision-making and high price inflation as challenges during September, Argaam reported.
Despite the moderation, companies remained optimistic about the near-term outlook. Around 34 percent of respondents expected business activity to increase over the next three months, compared with just 8 percent forecasting a decline. Confidence was strongest among residential construction firms.
The September survey, compiled by S&P Global for Al Rajhi Capital, covered 200 construction companies selected to represent the structure of Saudi Arabia’s construction sector, the report said.
