Saudi private-sector growth in August is fastest this year: PMI

Growth in Saudi Arabia’s non-oil private sector edged up in August to its fastest rate this year, according to reports, “suggesting a long-awaited recovery of the economy may have begun.”

The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index rose to 55.1 last month from 54.9 in July; a level above 50 indicates expansion, Reuters reports. Output growth accelerated to 59.7 from 58.8, while growth of new orders climbed to 59.0 from 58.5. Employment growth slowed marginally, however, to 51.0.

Real GDP growth is expected to increase to 1.9 percent in 2018, with non-oil growth strengthening to 2.3 percent, the IMF forecasted. Growth is expected to pick-up further over the medium-term as Vision 2030 reforms take hold and oil output increases.