Saudi non-oil private sector improves, employment hits highest since November 2019: IHS Markit

Riyadh city

Saudi Arabia's non-oil private sector registered a sharp improvement in June, as business activity was bolstered by an upturn in new orders, which was fastest since January, according to IHS Markit.

The headline seasonally adjusted Purchasing Managers' Index (PMI) posted 56.4, to indicate a robust expansion in the non-oil private sector economy. Business conditions have improved in each of the last 10 months as the sector recovers from the impact of the COVID-19 pandemic.

Input prices rose solidly again in June, although there were some signs that inflationary pressures may have peaked. At the same time, discounts linked to strong competition meant that output prices increased only marginally overall, the consultancy noted.

The rollout of COVID-19 vaccines and easing of restrictions helped lift confidence for future activity to a five-month high, as firms hope that the economic recovery will accelerate over the second half of the year.

Meanwhile, employment numbers rose at the quickest pace since November 2019. Further increases in sales should encourage firms to expand their workforces, particularly as the outlook for future business conditions looks promising.