The Purchasing Managers' Index in Saudi Arabia scored 56.3 points in July 2022, in light of the strong growth witnessed by the non-oil producing private sector, supported by the increase in the number of customers, production and increased purchases.
This recovery led to a faster increase in employment, with job creation accelerating to its strongest level in nearly three years.
Nevertheless, strong inflationary pressures continued to affect production input costs and production fees, which recorded strong increases.
The non-oil producing companies in Saudi Arabia witnessed a noticeable increase in activity in the month of July, despite the growth rate declining slightly since the end of the second quarter and lower than the level of the study.
The number of companies that witnessed an increase in activity in this month was five times that of a decrease of 25% compared to 5%, and this expansion was mainly associated with increased sales, new projects and increased marketing.
New business rose significantly in July, and this month recorded the fastest rise in eight months. Companies attributed the rise in sales to improved market conditions at home and increased demand for exports, as new foreign orders rose strongly and to the maximum since last November.
Companies were encouraged by higher orders to raise hiring levels in July, and the pace of job creation was the fastest since September 2019.
