KSA`s no-oil business actions continue to be strong in November on recent order boost
Date
12/5/2023 7:33:58 AM
(MENAFN) In a testament to the resilience of Saudi Arabia's non-oil private sector, business activity remained robust in November, fueled by a significant surge in client orders and output. According to the Riyad bank purchasing managers' index, the headline reading dropped slightly to 57.5 from October's 58.4, but it continues to comfortably stay above the neutral mark of 50, signifying expansion.
Despite challenges such as a rise in raw material prices that led to increased selling rates, the kingdom's non-oil private sector Economy displayed noteworthy expansion. Demand remained robust, and new business inflows witnessed their most substantial increase since June. This upturn was attributed to a surge in new customers and heightened investment spending, indicating sustained economic momentum.
Riyad Bank's Chief Economist, Naif Al-Ghaith, highlighted the positive outlook, stating, “Firms anticipate a continuous increase in output, fueled by a robust inflow of new projects.”
Manufacturers, in particular, expressed high optimism for the coming 12 months, foreseeing a favorable business climate.
The wholesale and retail sectors mirrored this positive sentiment in November, aligning with the overall expansionary trend in Saudi Arabia's non-oil private sector economy. Al Ghaith emphasized the favorable implications for the kingdom's economic growth and the promising environment for businesses across various industries.
New orders and output, pivotal contributors to the headline index, experienced marked growth in November. Notably, new orders reached their highest reading in five months, reflecting a buoyant business environment. The surge in new business intake during November was attributed to improved market conditions and an increase in customer numbers.
As Saudi Arabia's non-oil private sector navigates challenges and capitalizes on growth opportunities, the article delves into the factors contributing to its resilience. By examining the positive indicators and economic outlook, the narrative sheds light on the kingdom's continued commitment to fostering a dynamic and thriving business environment.
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