#Saudi non-oil sector expansion loses momentum in August - PMI | Reuters

Saudi non-oil sector expansion loses momentum in August - PMI | Reuters

Saudi Arabia's non-oil private sector continued to grow in August but lost momentum due to a sharp drop in output expansion, a business survey showed, signalling a challenging recovery from the COVID-19 pandemic.

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers' Index (PMI) dropped to 54.1 in August from 55.8 in July, remaining above the 50 mark that separates growth from contraction.

The output sub-index stood at 55.4 against 59.7 in July, its weakest reading since October last year.

"The non-oil economy went slightly off the boil in August, as output growth slipped to the weakest level for ten months amid a slowdown in new business gains," said David Owen, economist at IHS Markit.