Riyadh – The growth of the non-oil private sector economy in Saudi Arabia accelerated last September, reaching its highest level in 4 months, driven by an increase in new orders and employment.
This came in a monthly report issued by Riyad Bank for Purchasing Managers, on Thursday, in which it said that its Purchasing Managers’ Index in Saudi Arabia, which measures the performance of the non-oil private sector, rose to 56.3 points in September from 54.8 points in the previous August.
The bank stated that the index recorded its highest reading since May, moving further away from the level of 50.0 points, which indicates growth, while less than 50 indicates contraction.
Contributing to the improvement were increased business conditions and strong employment opportunities, “despite difficulties in finding skilled employees that led to a shortage in production capabilities,” according to the bank.
The report added: “The non-oil private sector witnessed a noticeable acceleration in the growth of new orders during the month of September… The volume of new orders increased due to improved domestic demand, new customers, and promotional efforts.”
On Wednesday, the credit rating agency Moody’s expected continued strong growth in the Saudi non-oil economy during the period 2025-2027, supported by economic diversification programs and major projects linked to the Kingdom’s Vision 2030.
Moody’s said in its report on the Saudi economy that the real growth of non-oil GDP is expected to reach a rate ranging between 5.0 percent and 5.5 percent during that period, compared to an average of 4.6 percent in 2022-2023 and only 1.5 percent between 2017-2019.
Anatolia
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2024-10-03 15:00:21
