The IHS Markit Saudi Arabia PMI increased to 50.0 in July 2020 from 47.7 in June, signaling overall stability in operating conditions amid the coronavirus pandemic.
The volume of new orders placed with Saudi non-oil private sector companies was broadly stable in July, following marked declines in the previous four months as the economy locked down to stop the spread of the COVID- 19 pandemic.
PMI data indicated resilient domestic demand, although new export orders continued to fall sharply.
The level of total business activity neared stabilization in July, with the Output Index improving to a five-month high. A number of firms reported that a pick-up in market conditions and greater marketing activity had supported business levels.
Although market conditions showed signs of stability in July, a number of firms reported having to make layoffs to reduce overheads but on an average less than that of June.
“The July PMI scoring exactly 50.0 is a clear indication that the Saudi non-oil private sector is over the worst of the disruption caused by the pandemic, but remains some way from ‘normal’ business conditions,” said Trevor Balchin, economics director at IHS Markit.