Riyadh: The seasonally adjusted PMI inched up to 56.4 in August from 56.3 in July, comfortably above the 50.0 threshold that signals expansion. Analysts noted that while growth has eased from the highs earlier this year, the overall trend remains firmly positive.
New orders rose at their fastest pace in four months, supported by improved economic conditions, stronger marketing efforts, and collaborations within the Gulf Cooperation Council (GCC) region. The new orders subindex climbed to 60.1 from 59.7 in July. Export orders also saw a rebound.
Employment in the non-oil private sector continued to rise, though at a slightly slower pace, as firms expanded sales teams and launched new projects. Inventory levels hit a four-month high, reflecting the uptick in demand.
The survey showed that businesses raised selling prices for the third straight month, driven by sharp increases in input costs due to global inflationary pressures and higher purchasing expenses. Despite this, overall business confidence improved, bouncing back from a 12-month low recorded in July. Companies reported stronger optimism about future output and economic prospects.