Riyadh - Mubasher: The adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) retreated to 53.9 points in December from 56.9 in November, marking the lowest levels witnessed by the Kingdom's non-oil private sector economy in nine months.
The slowdown in growth is driven by the concerns about the Omicron variant that has negatively affected customer demands and business confidence, according to a press release on Tuesday.
Meanwhile, the output levels increased at the softest rate since August, while new orders recorded a sharp slowdown in growth, resulting in a decrease in backlogs and employment rates.
The overall costs have also witnessed the fastest increase since June, attributed to price pressures on raw materials and other inputs.
Hence, the outlook for future activity retreated to an 18-month low.
However, the reading showed a solid improvement in operating conditions across Saudi Arabia's non-oil private sector economy.
The Economist at IHS Markit, David Owen, said: "Of the four broad sectors covered by the survey, the latest data pointed to particularly sharp slowdowns in new order growth across manufacturing and services, as panelists often commented on canceled bookings and weaker client demand."
Owen added: "Alongside the Omicron variant, faster inflation and strong competition were also mentioned by companies with a downbeat outlook."
