RIYADH: Growth in Saudi Arabia’s non-oil private sector slowed to an eight-month low in June although employment growth accelerated slightly, a corporate survey showed on Tuesday. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index fell to 54.3 last month from 55.3 in May. A level above 50 means business is expanding. “The average PMI for the first half of 2017 stood at 56.0, well above the neutral 50.0 level and signalling a faster rate of non-oil private sector growth than in the first half of 2016,” said Khatija Haque, regional head of research at Emirates NBD. “However, faster non-oil GDP growth this year will likely be offset by contraction in the oil sector, following OPEC’s decision to extend output cuts through the first quarter of 2018.”
Output growth fell to 59.8 in June from 61.4 in May, while expansion of new orders edged down to 56.1 from 56.4. But employment growth rose slightly to 51.4. Output prices increased slightly in June after dropping outright in May, while input price inflation accelerated.
