Saudi private sector expansion continues
Riyadh, July 13, 2014
The Saudi Arabian non-oil private sector continued expansion during June, with output growth quickening to a 26-month high, a report said.
New business from abroad also improved, albeit at a slower pace than total new orders, said the SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys.
Data also indicated the sharpest rise in input buying since the survey began in August 2009, it said.
The UAE’s non-oil producing private sector companies reported sustained sharp increases in output, new orders and new export orders in June, with the rates of growth for both output and new exports reaching their highest levels since the survey began in August 2009.
Companies in the Egyptian non-oil producing private sector observed solid improvements in output, new orders and new exports in June. Purchasing activity increased at the fastest rate since the survey began in April 2011.
South African private sector companies reported further declines in both output and new orders, with the rates of contraction accelerating slightly since the previous month. Companies reported that mining strikes remained one of the main factors weighing on private sector demand.
The EMI indicated stronger output growth across global emerging markets in June. The EMI posted 52.3, up from 50.6 in May, signalling the sharpest rate of expansion since March 2013. That said, it remained below its long-run average of 53.8.
The pick-up in output growth was reflected in both manufacturing and services, most notably the latter where activity growth hit a 15-month high.
Three of the four largest emerging markets contributed to the faster overall rise in output in June. China posted the sharpest increase in output for 15 months, while India saw the steepest expansion since February 2013. Russian private sector output stabilised, having fallen at the strongest rate in five years in May. Brazil, however, registered a further flat trend in activity.
Stronger output growth reflected the fastest increase in new orders since March 2013. Meanwhile, the level of outstanding business was unchanged, following a five-month sequence of decline.
Inflationary pressures remained subdued in June, despite input price inflation reaching a four-month high. Prices charged for finished goods and services continued to rise only fractionally. - TradeArabia News Service