The Saudi British Bank (SABB) has published a monthly report titled “SABB HSBC Saudi Arabia Purchasing Managers' Index™ (PMI™)” for December 2011 which highlights the economic performance of the companies in the non-oil producing private sector and establishments. The report, prepared by monitoring various variables that include output, new orders, exports, input prices, output prices, quantity of purchases, stocks and employment, shows a mild dip in the index. “The PMI slipped slightly to 57.7 at the end of the fourth quarter, from 58.1 in November,” a press statement of the SABB said on Tuesday. “The fall in the index signaled a mild improvement in business conditions across the Kingdom's non-oil private sector.” The headline index remained below its long-run average (59.9), the statement added. “Behind the weaker PMI readings were slower expansions in its two largest components —output and total new work. Employment and input stocks rose at slightly faster rates. The workforce in the non-oil private sector continued to rise in this period with an expansion in the export businesses. The statement said the overall growth rate of the new business moderated since November reflecting a slower activity. Large firms saw the maximum increase in new work. Growth of new orders with expectations of improved demand, led companies to build input stocks and take on additional staff in December. Buying activity and input holdings rose sharply, although the rise in input stocks remained relatively weak. However, these improvements in vendor performance did not prevent further backlog accumulation in the non-oil private sector. Business roared for the third month with low price pressures. Inflation eased to near
