Non-oil business activity in Saudi Arabia surged in June supported by strength in construction and tourism, a survey showed.
Reuters reports that the seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 59.6 in June, from 58.5 in May, and was well above the 50 mark that signals growth in activity.
The sub-index for output surged to 66.1, from 61.7 in May and the fastest pace of growth since March 2015.
“The kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities,” said Naif Al-Ghaith, chief economist at Riyad Bank.
“Yet this economic spike may contribute to increased inflationary pressures alongside reported increases in staff and construction material costs,” Ghaith said.
