Riyadh – Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) hiked to 58.2 in January 2023 from 56.9 in December 2022, according to Riyad Bank’s data.
The PMI, which was above the 50 mark, underscored the second-highest growth registered in 16 months since September 2021 and followed the recent 58.5 reading in November 2022.
Non-oil activity sharply widened last January, as nearly a third of all surveyed firms witnessed an uplift during the month. The rate of growth recorded a minor slide from November’s over-seven-year high.
Meanwhile, new order inflows highlighted a remarkable rise in January amid enhanced demand conditions and powerful client orders.
Naif Al Ghaith, Chief Economist at Riyad Bank, said: “Saudi Arabia is continuing its strong performance and outperformed the global economic trends for activity and demand.”
“This growth confirms the Saudi position as the fastest-growing economy among the group of 20 countries despite economic headwinds,” Al Ghaith noted.
He indicated: "This month, Saudi Arabia has also recorded a very strong future confidence level which climbed to a two-year high in January. This was driven by the ongoing improvement in the business environment, private-sector employment, and increased foreign investment with governance and labour market reform.”
"Inflation is expected to soften in the upcoming months with the reduction in input cost pressures and the continued improvements in supply chains,” the official underlined.
The Chief Economist concluded: “We have started to see weaker increases in output prices corresponding with input costs. The rise in output prices was the softest in nearly a year, despite the growth in new orders which remained marked in January.”
