Saudi December Non-Oil Business Growth Accelerates Slightly

Growth in Saudi Arabia’s non-oil private sector accelerated slightly in December, driven by an expansion in output, though it remained weaker than it was in most of 2014, a survey of businesses showed on Tuesday.

The seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers’ Index rose to 57.9 points in December from 57.6 in the previous month, on a scale where 50 points separates expansion from contraction.

Growth during 2014 was slower only in March, May and November. However, there was no clear sign in the PMI data of any major impact on private sector activity from the plunge of global oil prices over the last six months.

Output growth accelerated in December to 63.3 points after it dipped sharply in November to 60.3 points. Employment growth accelerated slightly, to 53.0 points.

However, the rate of growth in new orders slowed to 63.7 points from 64.7 points a month earlier.

Input price inflation remained steady at 53.8 points, while inflation in output prices slowed to 50.2 points.