The seasonally adjusted PMI in Saudi Arabia fell for the first time in 4 months from 56.4 last June to 55.8 in July 2021.
According to CNBC Arabia, the decline was driven by weaker growth in production, new orders and employment compared to the previous month.
However, the reading indicated a strong improvement in business conditions, extending the current growth period to 11 months.
Non-oil sector production maintained a sharp pace of growth in July, although it slowed for the second consecutive month.
Nearly 27% of surveyed companies reported an increase in activity, an increase linked to stronger customer demand and a relaxation of pandemic measures.
The latest data from the Purchasing Managers' Index (PMI) indicated a new expansion in the non-oil Saudi economy at the beginning of the third quarter of the year.
Production has grown at a sharp pace, supported by a strong increase in new business flows.
