Saudi Arabia Nov Private Sector Growth Highest Thus Far This Year

(RTTNews) - Saudi Arabia's private sector growth in November was the highest thus far this year amid faster growth in output and new orders and modest inflationary pressures, survey data from IHS Markit showed on Thursday.

The Emirates NBD Saudi Arabia purchasing managers' index, or PMI, rose to 55.2 in November from 53.8 in October, marking the highest reading since December last year.

A reading above 50.0 shows an expansion in the sector. The latest reading, however, was lower than the survey average.

Output growth rebounded from a six-month low to mark the second-quickest gain this year so far. Stronger demand for goods and services mainly came from the domestic market. New exports orders grew only marginally.

Price discounting and increased marketing also boosted output growth.

As firms increased their focus on cost-savings, the expansion in employment and purchasing activity slowed in November. Some staff were hired in marketing positions to boost the sales.

Strong competition prompted businesses to control costs to facilitate lower selling prices and prices charged decreased marginally. Purchase prices and average staff pay rose negligibly.

Despite easing slightly from October, business confidence remained strong and was the third best level since April 2014.