Saudi non-oil growth shows signs of slowing

04 July 2013

Non-oil private sector still expanding, but pace of growth is slowing

Saudi Arabia’s non-oil private sector continued to show signs of growth throughout June although the pace of expansion is starting to slow, according to the latest purchasing managing index (PMI) information published by the local/UK Sabb/HSBC.

The PMI figure for June, which is put together by surveying businesses about areas like their new orders, employment numbers, stock and goods purchased, was 56.6 in June, down from 57.3. Any figure above 50 indicates growth.

With oil production set to plateau in 2013 across the region the non-oil sector is expected to be the main driver of economic growth. The IMF is forecasting economic growth in Saudi Arabia of 4.4 per cent, down from 6.8 per cent in 2012.

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