Saudi PMI rises to 53.3, four-month high in June

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index, formerly the S&P Global Saudi Arabia PMI, rose to 53.3 in June. That is the highest reading in four months and keeps the index above the 50-point expansion threshold for another month.

The survey tracks activity across the non-oil private sector, covering manufacturing, construction and services. A reading above 50 signals growth. The June figure suggests the sector maintained solid momentum through the second quarter, according to the survey team.

The headline gain was driven by stronger output and new orders, the report showed. (The survey team attributed the rise to an improvement in business conditions and demand.)

For Saudi equities, the PMI reading offers a positive signal for companies whose revenues depend on domestic non-oil spending. Retailers, contractors and logistics firms are among the segments that benefit most directly from sustained expansion in the non-oil economy.

The next PMI release is scheduled for August.