JEDDAH, Saudi Arabia: Growth of business activity in Saudi Arabia's non-oil private sector eased in October but remained strong, a survey of over 400 private companies published on Monday showed.
The SABB HSBC Saudi Arabia Purchasing Managers' Index, which measures activity in the manufacturing and services sectors, was 59.8 points in October against September's four-month high of 60.3 points. The seasonally adjusted index stayed above the 50-point mark separating growth from contraction.
Output growth continued but at a slower rate than in the previous month, at 64.5 points in October versus 64.8 in September. "Marked increases in business activity were signalled by small, medium and large sized enterprises, with the fastest growth at large firms," the survey said.
New order growth also slowed, to 69.2 points in October from 70.2 in September. "Firms...linked higher levels of new business to improved economic sentiment, successful marketing and improved demand from the construction sector," it said.
While employment increased for the thirteenth consecutive month, it was a slower rise than in the previous month and below the survey's average.
Output price inflation rose sharply in October, to 53.7 points; input price growth fell slightly but was still at a higher level, 56.0 points.
Analysts in a Reuters poll, conducted in September, predicted that Saudi Arabia's gross domestic product would expand 5.3 percent this year, after a revised 7.1 percent last year. (Reuters)
