Saudi Arabia’s non-oil economy has recorded a strong improvement in business conditions in June, according to the latest Purchasing Managers Index data report from S&P Global.
Business has grown at the sharpest rate for eight months, despite evidence that intensifying cost pressures had led companies to mark up their prices.
The output levels in Saudi Arabia expanded in the second quarter of 2022, with more than 28 percent of the firms that took part in the survey reported a rise in May.
Business confidence also heightened to the uppermost level since the beginning of 2021, recorded the report.
David Owen, economist at S&P Global Market Intelligence, said: “Saudi Arabia’s non-oil economy continued to go from strength to strength in June, with the PMI picking up to an eight-month high of 57.0 and posting well above the 50.0 no-change mark.”
He said the upturn was underlined by a robust increase in new business levels, which encouraged firms to expand their output sharply and make greater input purchases.
At the same time, the report conveyed Saudi Arabia’s rapidly rising costs, an increase in the prices of raw materials and fuel, as global supply shrunk and consequently inflated output prices.
“While some companies reported concerns that sustained price rises could put a brake on the current path of growth, the latest survey data signaled overall output confidence picking up to a 17-month high” stated Owen.