Saudi non-oil private sector expands, Egypt edges towards stability

Published 03/06/2025, 09:22
Saudi non-oil private sector expands, Egypt edges towards stability

Investing.com -- The non-oil private sector in Saudi Arabia saw an accelerated expansion in May, driven by a surge in new orders, according to a survey published on Tuesday.

The growth was also bolstered by a strengthening in business confidence. The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) rose to 55.8 in May from 55.6 in April, suggesting a robust growth phase, albeit still below the high of 60.5 recorded at the start of the year.

There was a strong rebound in new order volumes in May from an eight-month low in April. This increase was attributed to heightened demand, robust sales performance, and new marketing efforts. New export orders also expanded, although at the slowest pace seen in seven months. The new order subindex jumped to 62.5 in May, up from April’s reading of 58.6.

However, output growth slowed to its weakest pace since September 2024. The construction sector led this rise in activity and new business, as indicated by the survey.

Meanwhile, Egypt’s non-oil private sector moved closer to stability in May, as per an S&P Global survey released on Tuesday. The seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI) increased to 49.5 from 48.5 in April, still below the 50.0 threshold that differentiates growth from contraction.

There was a continued decline in output and new orders, but at a slower rate compared to April. This was because fewer companies reported reductions in customer sales.

Despite this, businesses reduced their purchasing activity at the fastest rate in seven months and cut their workforces, leading to a drop in employment for the fourth consecutive month.

The output sub-index improved to 49.5 from 47.4 in April, and the new orders subindex rose to 49.1 from 47.4.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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