Activity in Saudi Arabia's non-oil private sector increased at a faster pace in October boosted by a rise in new orders, data from a survey by the Saudi British Bank and Matkit Economics showed Monday. The SABB HSBC Saudi Arabia Purchasing Managers' Index (PMI), which measures activity in the manufacturing and services in the private sector, increased to 56.7 in October from 56.3 in September. September's PMI was revised up from 54.5 which was the lowest level since the series was launched in August 2009. New orders growth also accelerated during the month on increased client demand. Consequently, output and buying activity grew sharply. At the same time, backlogs of work increased marginally in October, while employment remained broadly unchanged. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline. Meanwhile, Saudi central bank governor Muhammad Al-Jasser said Monday that he is optimistic Europe's leaders will take the right measures to tackle their debt crisis. Speaking at a financial forum in Kuwait, he also said the summit of European leaders last week had sent an important message to markets that the leaders had reached a decision-making phase. Markit said the revision followed new estimates for seasonality in a number of variables. It did not elaborate on the change. The survey of more than 400 private companies showed new order growth rising to 64.7 points in October from 62.6 in September, which was a 19-month low. Employment in Saudi Arabia's non-oil private sector rose slightly in October to 50.1 after it fell below 50 in September for the first time in the survey's history, hitting 49.9. Saudi Arabia has announced multi-billion dollar projects to upgrade its infrastructure and create more jobs. Meanwhile, Saudi stock market closed lower Monday as investors cashed in recent gains in insurance stocks, weighing on the stock benchmark Tadawul All Share Index. It shed 0.09 percent to 6,224.30 points, extending year-to-date losses to 6.1 percent. Buruj Insurance fell 9.9 percent. Petrochemical stocks also weighed with National Industrialization down 0.5 percent and Saudi Arabia Fertilizer slipping 0.5 percent.
