Saudi non-oil business growth boosted by high oil output in August: PMI

Published September 3, 2015
Saudi Arabia has raised its oil output to record highs in the last few months to protect its market share, although global oil prices plunged to six-year lows in August. ─ AP/File
Saudi Arabia has raised its oil output to record highs in the last few months to protect its market share, although global oil prices plunged to six-year lows in August. ─ AP/File

DUBAI: Growth in Saudi Arabia's non-oil private sector rose to a five-month high in August, buoyed by the impact of increasing oil production, a survey of businesses showed on Thursday.

The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index climbed to 58.7 points last month from 57.7 in July. The 50-point level separates expansion from contraction.

Saudi Arabia has raised its oil output to record highs in the last few months to protect its market share, although global oil prices plunged to six-year lows in August.

Khatija Haque, head of regional research at Emirates NBD, said the oil price slide since June did not seem to be hurting non-oil business activity in the country, while higher oil production had apparently boosted activity in related manufacturing sectors that were included in the PMI survey.

"We expect Saudi Arabia to maintain high levels of oil output regardless of the price, which should continue to underpin activity in the non-oil sectors through the rest of this year," she said.

Output growth in the PMI survey accelerated to 65.8 points in August from 65.1 in July, while new order growth picked up to 64.8 from 63.1. Employment growth rose sharply to 53.3 points.

Output prices fell for the first time in four months, with the index hitting 49.7 points, while input price inflation was positive but slowed.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IMF’s unease
Updated 24 May, 2024

IMF’s unease

It is clear that the next phase of economic stabilisation will be very tough for most of the population.
Belated recognition
24 May, 2024

Belated recognition

WITH Wednesday’s announcement by three European states that they intend to recognise Palestine as a state later...
App for GBV survivors
24 May, 2024

App for GBV survivors

GENDER-based violence is caught between two worlds: one sees it as a crime, the other as ‘convention’. The ...
Energy inflation
Updated 23 May, 2024

Energy inflation

The widening gap between the haves and have-nots is already tearing apart Pakistan’s social fabric.
Culture of violence
23 May, 2024

Culture of violence

WHILE political differences are part of the democratic process, there can be no justification for such disagreements...
Flooding threats
23 May, 2024

Flooding threats

WITH temperatures in GB and KP forecasted to be four to six degrees higher than normal this week, the threat of...