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New Businesses Pick up at Quickest Pace in 51 Months in Saudi Arabia

New Businesses Pick up at Quickest Pace in 51 Months in Saudi Arabia

Wednesday, 4 December, 2019 - 11:00
The Kingdom Center Tower in Riyadh, Saudi Arabia. (Reuters)

The Saudi economy recorded its biggest increase in new work in more than 51 months, according to a report from IHS Markit.

Employment among non-oil private sector companies rose in November.

The headline seasonally adjusted Purchasing Managers’ Index – a composite gauge designed to give a snapshot of operating conditions in the non-oil private sector economy – posted 58.3 in November.

The report also found inflows of total new business increased at a faster pace in November with the rate of growth steep and the quickest since April 2015. This partly reflected a further pickup in new export orders, which increased at a sharper pace than in October.

The rate of job creation was marginal and subdued by historical standards and the highest in over four years, IHS Markit said.

IHS Markit economist Amritpal Virdee said: “November’s PMI data for Saudi Arabia revealed a stronger improvement in underlying economic conditions and when coupled with the recent improvements in growth momentum, point to a faster rate of non-oil GDP expansion for the fourth quarter of 2019.”

“Overall, the private sector economy is well-placed as we look forward to 2020, with the survey’s forward-looking gauge, the Future Output Index rising to a nine-month high on the pace of new product initiatives and more positive forecasts for underlying demand,” added Virdee.

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