JEDDAH: Rising to 59.9 in October, from 58.4 in September, the seasonally adjusted headline Saudi Arabia purchasing managers' index (PMI) – a composite indicator designed to provide a single-figure snapshot of the performance of the non-oil producing private sector – signaled a sharp gain in the health of the economy, the Saudi British Bank (SABB) said Wednesday. Moreover, the rate of improvement was faster than the series trend. Total new order receipts at Saudi private sector companies rose substantially in October and at the fastest rate since July. This was despite growth of new export business easing to a series record low. Panelists cited favorable economic conditions, greater demand and successful promotional activities as the key factors driving overall new order levels higher. Greater volumes of new work led Saudi private sector firms to raise output, employment and purchasing more sharply in October. Activity increased at a considerable pace, while job creation was solid. Growth in both variables was the fastest since June. Meanwhile, buying activity expanded substantially. The latest increase in input acquisitions was sufficient to further build up stocks of purchases at the start of Q4. However, the rate of accumulation moderated to a survey record low. Despite stronger demand for inputs in October, average vendor performance continued to improve. Moreover, lead times shortened to a greater extent than over the previous five months.
