The Clap
Riyad Bank’s Purchasing Managers’ Index (PMI) (1010) decreased to 56.9 points in December 2022 from 58.5 points in November 2022 but is still well above the 50-point level that separates growth from contraction.
What
Although KSA’s PMI slowed to a three-month low, figures showed employment in the non-oil sector increasing in December to the highest rate since January 2018.
New order flows also increased sharply, with 30% of the companies surveyed reporting growth in December compared to November.
So What
Naif Alghaith, Chief Economist at Riyad Bank, said that operating conditions remained favorable in December, characterized by rapid growth in non-oil activities and a strong labor market by the end of 2022, with greater momentum in jobs and wages than previously thought.
Now What
Alghaith explained that December’s data indicates continued growth for Q4 and optimism about 2023. Non-oil GDP growth is expected to exceed 4% in 2023.
