Saudi Arabia Non-Oil Private Sector Growth Slows In January

(RTTNews) - Saudi Arabia's non-oil private sector growth eased in January, survey results from IHS Markit showed on Thursday.

The Purchasing Managers' Index fell to 53.2 in January from 53.9 in December.

This was the lowest for fifteen months. Any reading above 50 indicates growth in the sector.

The rate of new order growth eased for the fourth straight month in January and new orders from foreign customers declined for the first time since March.

The rate of expansion in business activity eased to the lowest in five months in January and backlogs of work decreased at the strongest rate for six months.

The number of staffing rose at the softest pace in the current ten-months of job creation.

Overall delivery times remained unchanged after four consecutive months of growth.

Input cost pressures moderated in January and output charges increased to the least extent for four months.

The outlook restrengthened in January after sentiment declined to the lowest in eighteen months.

"Customer demand in the non-oil sector was quelled by the Omicron variant at the start of the year, leading t slower rises in activity and new business and the softest improvement in business conditions since October 2020," David Owen, economist at IHS Markit, said.