Arab News, Monday, Sep 6, 2021 | Muharram 29, 1443
Saudi output growth falls sharply to lowest in 10 months: IHS Markit
Saudi Arabia:
Saudi Arabia's activity growth
in the non-oil sector weakened in August with output expansion at its weakest in
10 months.
August PMI data from IHS Markit survey data showed
a fall to 54.1 in August down from July's 55.8.
Despite the fall, the reading suggested an
improvement in the non-oil sector, albeit a slower growth as the subdued
recovery was put down in part to increases in Covid-19 cases globally dampening
foreign demand.
The knock-on effects of the softer recovery saw
business confidence and hiring growth remain muted with SA firms reporting a low
level of hiring activity in August.
David Owens, Economist at IHS Markit, said: "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.
Whilst domestic orders remained strong and firms saw an upturn in tourist
numbers, many businesses continued to find market conditions challenging amid
the pandemic."
He added that "the unpredictability of the
pandemic meant that downside risks remained high," which could keep a lid on
firms' future activities.