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RIYADH: The Saudi Purchasing Managers Index was unchanged from April at 55.7, according to a press release from S&P Global.
The overall index figure signaled a marked expansion in activity and new orders in Saudi non-oil businesses, with concerns lingering that inflation could hamper demand in global and domestic markets.
New business rose at a slightly faster pace than in April as demand began to recover with a recovering post-pandemic economy, according to the news release.
“The continued strength in the domestic non-oil economy encouraged businesses to pass on higher input costs to customers in May, with the latest PMI data indicating another solid increase in selling prices due to rising labor costs. fuel, materials and transportation,” he added. , quoting firm economist David Owen.
The price increase was also accompanied by an increase in input costs at the second fastest rate in a year and a half – apart from the rise in March linked to the consequences of the Russian invasion of Ukraine.
This is triggered by global inflationary measures, which have resulted in higher fuel, material and freight prices.
The limited supply posed another limit to improved supplier performance as non-oil business backlogs in May increased, marking the first incomplete activity since the start of the COVID-19 pandemic.
Thus, employment figures also showed a slight increase for the second month in a row, according to the report.
“Reflecting these risks, the outlook for future activity remained particularly weak, with only 11% of respondents reporting expectations of an increase in production by May 2023, less than half of the long-term trend. investigation,” Owen said.