RIYADH: According to an economy tracker, Saudi Arabia’s non-oil private sector had strong growth in July, propelled by ongoing demand and increased competitive pressures.
S&P Global’s compilation of the Riyadh Bank Saudi Arabia PMI survey showed that the Kingdom’s Purchasing Managers’ Index declined marginally to 54.4 in July from 56.4 in May and 55 in June. According to S&P Global, readings below 50 indicate contraction in the non-oil sector, while readings above 50 indicate growth.
“PMI managed to stay on the expansion, recording a solid 54.4, reacting to the status quo of demand and competition in the Saudi market,” stated Naif Al-Ghaith, chief economist at Riyad Bank. This statistic demonstrates how the private sector has continued to grow due to persistent demand in spite of increased competition.
Demand has been a significant factor in driving orders and keeping businesses forward-thinking and active, the speaker continued. According to the report, intense competition in the market has caused prices to decline as companies compete to keep customers by providing more appealing prices.
S&P Global also noted that, in spite of some survey respondents’ waning business confidence, staffing and inventory levels increased in July. Stronger workforces assisted businesses in managing backlogs despite capacity constraints resulting from the recent heatwave, according to the report.
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