The Kingdom’s seasonally adjusted Riyad Bank Purchasing Managers’ Index (PMI) rose to 58.4 in October from 57.2 in September, well above the 50 level that indicates growth and the highest reading since June.
New business grew faster, with the sub-index for new orders rising to 66.1 in October, also the highest level in four months, from 64.2 the previous month.
The survey showed growth in production and new businesses in most sectors, including manufacturing and construction. Output growth remained high despite the sub-index falling to 60.1, weaker than the long-term trend.
Nayef Al-Ghaith, chief economist at Riyad Bank, said, “The rise in new orders indicates the expansion of the market and indicates that the non-oil sector is witnessing sustainable growth and demand for its products.”
He added, “Employment growth constitutes a promising sign for the Saudi economy, because it indicates an increasing demand for labor and a potential improvement in the labor market.”
The employment sub-index rose to a nine-year high of 54.5 in October from 52.0 in September.
Creating job opportunities for citizens in the expanded private sector is a priority for the government as it implements a wide-ranging economic diversification plan known as Vision 2030, led by Crown Prince Mohammed bin Salman.
The Saudi government expects the non-oil economic sector to grow by about six percent in 2023, which significantly exceeds the growth of the overall gross domestic product.
While confidence in future production declined compared to the previous month, companies remained generally optimistic.
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