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Al-Marsad Journal – Reuters: A survey on Tuesday showed that the non-oil private sector in Saudi Arabia grew in September, and new orders rose at the fastest pace in seven years, after restrictions were eased by the Covid-19 pandemic on activities and travel has supported consumer demand.
The IHS Markit Seasonally Adjusted Purchasing Managers Index in Saudi Arabia rose to 58.6 in September from 54.1 in August, remaining above the 50 mark that separates growth from contraction.
The 4.5 point increase represents the biggest improvement in non-oil sector conditions since August 2015.
Companies increased production at the fastest pace since May and new orders surged, with its sub-index rising 10 points on a monthly basis.
“After two consecutive months of decline, the latest reading shows that the economic recovery is strong, and the easing of pandemic restrictions will start a new wave of demand,” said David Owen, economist at IHS Markit.
Saudi Arabia, the world’s largest oil exporter, expects economic growth of 2.6% this year and 7.5% in 2022, following a contraction of 4.1% last year due to the Corona crisis and a record drop in oil prices.
Private sector growth is a key aspect of Mohammed bin Salman’s Vision 2030, a plan to transform the economy and make it less dependent on oil.
But despite the surge in new orders, job availability remained limited in September. The companies surveyed reported adequate absorption levels.
“Demand pressures and growing optimism about the business will encourage more companies to hire staff in the last quarter of this year,” said David Owen.
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