Latest news with #NaifAlGhaith
Arab News
3 days ago
- Business
- Arab News
Saudi Arabia's non-oil sector growth continues in May as PMI climbs to 55.8
RIYADH: Saudi Arabia's non-oil private sector registered an improvement in operating conditions in May, as the Riyad Bank Purchasing Managers' Index rose to 55.8, signaling continued economic expansion, a new analysis showed. According to the latest Riyad Bank Saudi Arabia PMI report compiled by S&P Global, the index edged up from 55.6 in April, remaining well above the 50 mark that separates growth from contraction. However, the figure remained below the recent high of 60.5 recorded at the beginning of 2025. The latest data pointed to a sharp increase in new order volumes, which rebounded after weakening in April. Companies linked the increase to stronger customer demand, improved sales performance, industrial development, and marketing efforts. Foreign orders also rose, but at the slowest pace in seven months. 'Saudi Arabia's non-oil economy maintained solid momentum in May, with the PMI rising slightly to 55.8 from 55.6. While the pace of output growth eased to its softest since September 2024, overall activity remained robust,' Naif Al-Ghaith, chief economist at Riyad Bank, said. He added: 'Firms reported improvements in demand, new project starts, and greater labor capacity as key drivers. This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter.' The survey showed that output continued to grow, though at a softer rate for the fourth straight month. The construction sector recorded the strongest rises in both output and new business. Employment in the non-oil sector rose sharply in May, with the increase in staffing levels among the fastest seen in over a decade. Surveyed businesses attributed this to expansion efforts and higher output needs. 'Looking ahead, sentiment among non-oil firms has strengthened visibly. Business expectations looking forward reached their highest level since late 2023. Hiring momentum remained strong as companies expanded teams to support output growth, particularly in operations and sales,' Al-Ghaith said. Meanwhile, purchasing activity surged to a 14-month high. However, firms showed greater caution toward stockpiling, resulting in a slower accumulation of inventories compared to April. The report also indicated that input prices rose sharply, mainly due to increased supplier charges for raw materials. Wage-related inflation, however, eased. Despite cost pressures, companies reduced their selling prices, largely driven by a decline in service sector charges and competitive market conditions. The survey data were collected from around 400 private sector companies across the manufacturing, construction, wholesale, retail, and services sectors.
Al Arabiya
3 days ago
- Business
- Al Arabiya
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. 'On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain,' Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
Zawya
3 days ago
- Business
- Zawya
Saudi PMI edges higher as non-oil private firms log output growth
Output growth among businesses in Saudi Arabia's non-oil private sector ticked marginally higher during May, but was softer than in the first quarter, a new survey showed. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), rose to 55.8, a shade higher than 55.6 in April. However, it remained much lower than the recent peak of 60.5 at the start of the year. While the PMI is a weighted average of the following five indices: new orders (30%), output (25%), employment (20%), suppliers' delivery times (15%) and stocks of purchases (10%), only the new orders index rose in May. 'Firms reported improvements in demand, new project starts, and greater labour capacity as key drivers. This expansion, though slightly softer, reflects stable operating conditions and continued confidence across the private sector midway through the second quarter,' said Naif Al-Ghaith, Chief Economist at Riyad Bank. The survey showed a marked increase in employment, with the rise in staffing one of the fastest seen in over a decade. 'On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain,' said Al-Ghaith. Panellists reported an increase in supplier charges for raw materials, with purchase price inflation ticking up to its highest since February. However, selling prices were reduced in May, due to competitive pressures. Optimism regarding the coming 12 months was higher than in April and was the greatest recorded in one-and-a-half years, as companies cited expansion plans and improved demand conditions. (Writing by Brinda Darasha; editing by Seban Scaria)
Reuters
3 days ago
- Business
- Reuters
Saudi Arabia's non-oil private sector growth accelerates in May, PMI shows
ABU DHABI, June 3 (Reuters) - The expansion in Saudi Arabia's non-oil private sector activity quickened in May, driven by accelerated growth in new orders, while business confidence also strengthened, a survey showed on Tuesday. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to 55.8 in May from 55.6 in April, firmly in growth territory even though it remains below the peak of 60.5 seen at the beginning of the year. New order volumes rebounded strongly in May from an eight-month low in April, attributable to increased demand, strong sales performance, and new marketing initiatives. New export orders also grew, albeit at the slowest pace in seven months. The new order subindex jumped to 62.5 in May from April's 58.6 reading. But the pace of output growth eased to its softest since September 2024. The construction sector led the rise in both activity and new business, according to the survey. "On the domestic front, firms increased hiring to match rising output needs, while purchasing activity saw its fastest growth since March 2024, supported by improved vendor delivery times and a more agile supply chain," Naif Al-Ghaith, Riyad Bank's chief economist said. Input prices rose sharply, driven by increased supplier charges for raw materials. However, competitive pressures led firms to reduce selling prices, particularly in the services sector, despite higher costs. The degree of business optimism improved significantly, with confidence among respondents reaching an 18-month high, as companies cited expansion plans and improved demand conditions.
