Riyadh – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia rose for the second month in a row to 56.4 in May from 55.2 in April, according to the IHS Markit survey.
The Kingdom’s business activity has accelerated at the quickest pace in May since December 2017, while the reading indicated a robust improvement in business conditions that was the fastest recorded since January this year.
Companies in Saudi Arabia built their inventories at the fastest rate for 18 months, largely operating with existing workforces as backlogs continued to fall.
New orders increased sharply, hitting the quickest pace in four months. In addition, export orders rose to the greatest extent since December 2015 as global demand strengthened amid rolling out COVID-19 vaccines.
Enterprises have purchased more inputs for the eighth month in a row in May, and the rate of growth jumped to a 17-month high. Delivery times were reduced as suppliers were generally able to meet input demand and boost capacity.
Job numbers in Saudi Arabia increased for the second consecutive month, yet the pace of expansion slowed from April.
“Overall expenses faced by non-oil firms increased in May, with the rate of inflation quickening for a fourth month in a row. Rising purchase costs were largely behind the increase, as businesses noted that stronger demand and global supply shortages led to upwards pressure on raw material prices,” according to the report.
It is worth noting that Saudi Arabia’s consumer price index (CPI) accelerated 5.3% in April this year compared to the same month in 2020.
