Saudi Arabia’s non-oil business sector has seen a strong growth trend, as indicated by a recent survey, revealing that the Kingdom’s economy has been on an upward trajectory for a second consecutive month in October.
According to Reuters, the Riyad Bank Saudi Arabia Purchasing Managers’ Index, which is seasonally adjusted, surged to 58.4 last month, up from September’s 57.2. This marks an upturn and stands well above the 50-point threshold, signifying growth. Notably, this figure represents the highest reading since June.
One of the driving factors behind this performance has been the surge in new orders, which has played a pivotal role in sustaining the growth momentum. The new orders sub-index rose to 66.1 in October, marking a four-month high and showcasing a significant improvement from the previous month’s 64.2.
The positive impact of this surge in new business has been witnessed across various sectors, including manufacturing and construction. Although the growth in output remained strong, the sub-index eased slightly to 60.1, which is slightly below the long-term trend.
Reuters quoted Naif Al-Ghaith, the chief economist at Riyad Bank, as saying, “The surge in new orders signifies an expanding market and suggests that the non-oil sector is experiencing sustained growth and demand for its products.”
This is a promising sign for the Saudi economy, indicating a growing demand for labour and potential improvements in the job market, as reflected by the rise in the employment subindex.
In October, the employment subindex reached a nine-year high of 54.5, up from 52.0 in September.
This surge in employment is in line with the government’s plan towards creating more job opportunities for its citizens, a key element of Vision 2030, an ambitious economic diversification plan spearheaded by Crown Prince Mohammed bin Salman.
The plan aims to reduce the nation’s dependence on oil and create a more diverse and sustainable economy.
Source : WIONews
