Saudi business activity rebounds
Riyadh, October 31, 2011
Growth in business activity in Saudi Arabia's non-oil private sector rebounded slightly in October from a series low in the previous month, boosted by a rise in new orders.
The SABB HSBC Saudi Arabia Purchasing Managers' Index, which measures activity in the Opec member's manufacturing and services sectors, rose to 56.7 in October from 56.3 in September, which was the lowest level since the series was launched in August 2009.
September's PMI was revised up from 54.5; data provider Markit said the revision followed new estimates for seasonality in a number of variables. It did not elaborate on the change.
The seasonally adjusted index for Saudi Arabia continues to hold above the 50 mark that separates growth from contraction. The survey of more than 400 private companies showed new order growth rising to 64.7 points in October from 62.6 in September, which was a 19-month low.
Employment in Saudi Arabia's non-oil private sector rose slightly in October to 50.1 after it fell below 50 in September for the first time in the survey's history, hitting 49.9.
Saudi Arabia is being affected by weak growth in Europe and the United States as well as by a slide in oil prices over the last several months. It has announced multi-billion dollar projects to upgrade its infrastructure and create more jobs. - Reuters