https://arab.news/bst62
RIYADH: 黑料社区鈥檚 non-oil economy accelerated in October, with the Purchasing Managers鈥� Index climbing to 60.2, its second-highest level in more than a decade, signaling strong business growth momentum.
The latest survey by Riyad Bank and S&P Global showed a sharp improvement in operating conditions across the Kingdom鈥檚 private sector, underpinned by solid demand, rising employment, and robust output growth.
The October reading, up from 57.8 in September, highlights the sustained momentum of the non-oil economy as Vision 2030 reforms continue to drive diversification away from crude revenues.
Speaking at the Future Investment Initiative in October, 黑料社区鈥檚 Minister of Economy and Planning Faisal Alibrahim said the Kingdom鈥檚 gross domestic product is expected to expand by 5.1 percent in 2025, supported by continued growth in non-oil activities.
Commenting on the latest report, Naif Al-Ghaith, chief economist at Riyad Bank, said: 鈥満诹仙缜�檚 non-oil private sector recorded a solid improvement in business conditions in October, with the PMI rising to 60.2, marking one of the strongest readings in over a decade.鈥�
He added: 鈥淭he acceleration was driven by broad-based gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy.鈥�
Al-Ghaith noted that the latest survey results also indicate a strong start to the final quarter of the year, supported by both domestic and external demand.
According to the report, the pace of growth in new orders received by non-oil companies accelerated for the third consecutive month in October, with 48 percent of surveyed firms reporting higher sales.
Participating companies attributed the sales growth to improving economic conditions, a growing client base, and increased foreign investment.
Output and employment also expanded sharply during the month, with job creation rising at the fastest pace in nearly 16 years.
Al-Ghaith said the persistent rise in new export orders highlights the growing competitiveness of Saudi firms and the progress achieved under ongoing diversification initiatives.
鈥淭he rise in demand encouraged firms to expand production and workforce capacity at the fastest rate since 2009, as businesses expanded capacity to meet new workloads. Purchasing activity and inventories also increased, while suppliers鈥� delivery times continued to improve, reflecting efficient coordination and resilient supply chains,鈥� he added.
October data indicated a sharp rise in input costs for non-oil firms, driven mainly by wage increases from salary revisions and bonuses.
On the outlook, companies remained optimistic, citing strong market demand, ongoing project work, and government investment initiatives.
鈥淥ptimism is underpinned by solid domestic demand and the momentum of ongoing projects. Although some concerns persist around costs and competition, sentiment overall remains strongly positive, reflecting confidence in the economy鈥檚 continued expansion and the strength of the non-oil private sector,鈥� concluded Al-Ghaith.