Despite Regional Upheaval, Saudi Non-Oil Output Growth Rises
RIYADH: Saudi Arabia’s non-oil private sector expanded for a seventh straight month in October, with output growth accelerating, although input-cost inflation hit its highest level since June.
The Riyad Bank Saudi Arabia Purchasing Managers’ Index, produced by S&P Global, fell to 54 in October from 55.3 in September.
That was still well above the neutral 50 threshold between growth and contraction, and the second-highest since February. The data were collected from Oct. 12 to Oct. 22.
The comments come amid ongoing maritime disruptions related to regional instability, which are affecting trade routes and increasing freight and insurance costs for firms.
Saudi Arabia has rerouted oil exports through other channels, like the Red Sea, to keep shipments flowing amid damage to usual shipping lanes.
Saudi Arabia’s non-oil private sector continued to show resilience during October, supported by robust domestic demand, stronger business activity and continued growth in employment,” said Naif Al-Ghaith, chief economist at Riyad Bank.
He said a particularly encouraging development was the acceleration in business output, which expanded at a robust pace despite a challenging geopolitical environment. Non-oil firms added to their workforces for the fourth consecutive month, although job creation was modest and slower than in September.
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