According to a new survey, non-oil business activity in Saudi Arabia intensified in June, boosted by strength in construction and tourism.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) increased to 59.6 in June from 58.5 in May, considerably above the 50 level that indicates activity expansion.
“The Kingdom’s non-oil private sector remained on a steeply upward growth trajectory by the end of the second quarter, as inflows of new business accelerated, particularly in construction and tourism activities,” said Naif Al-Ghaith, chief economist at Riyad Bank. “Yet this economic spike may contribute to increased inflationary pressures alongside reported increases in staff and construction material costs.
“The Kingdom’s non-oil private sector remained on a steeply upward growth trajectory”
“Ultimately, the government-backed investments, particularly in construction/infrastructure projects remain to be vital for business activity,” Ghaith concluded.