The Saudi Arabia Purchasing Managers' Index rose to 55.3 points in September

According to a recent economic report issued today, the purchasing managers’ index in Saudi Arabia issued by Riyad Bank, which is prepared by Standard & Poor’s Global, rose to 55.3 points in September from 53.8 points in August, according to the survey.

Output growth slowed to a five-month low after hitting a seven-month high in August, while new orders rose at the fastest pace since February.

Demand for exports remained weak, as new orders from foreign customers fell for the seventh month in a row.

Employment growth accelerated to a seven-month high, with companies expanding sales teams and hiring technical staff.

Supply chain pressures continued, with supplier delivery times improving only slightly and at the slowest pace in five months.

Companies raised selling prices at the second fastest pace in more than six years as material and transportation costs continued to rise.

Companies were less optimistic about next year, as the future production index fell to the lowest level since March amid fears of regional tension and further disruption to supply chains.

Nayef Al-Ghaith, chief economist at Riyad Bank, said that the September results are generally consistent with the broader picture of the Saudi economy, as domestic consumption, investment activity, projects linked to the government and the Public Investment Fund, and the continued availability of credit remain important supporting factors for non-oil activity.