Saudi July Non-Oil Business Growth Fastest Since September 2012

Growth in Saudi Arabia’s non-oil business activity accelerated in July to its fastest level since September 2012, boosted by strong output and new orders, a survey showed on Tuesday.

The seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers Index rose to 60.1 points last month from 59.2 points in June, on a scale where the 50-point level separates expansion of activity from contraction.

The sub-index for output, at 65.3 points, was the highest since February 2012, while the new orders sub-index was the highest since September 2013.

The survey’s authors said companies that participated cited rising numbers of new projects and good market conditions for July’s rapid growth in activity.

However, capacity constraints were evident in a rise in the sub-index for backlogs of work, which at 55.6 points was the highest since the survey began in August 2009.

The rates of inflation of purchase costs, staff costs and overall input prices accelerated in July from June, as did growth in output prices, the survey showed.