Kingdom’s Purchasing Managers’ Index survey compiled by IHS Markit rose to the highest. supported by an increase in new business along with an uptick in export orders. The pace of expansion was the fastest since December 2017. Employment in the Arab world’s largest economy also gained slightly last month as some private sector firms expanded their capacity. Firms often cited growth in new business and a notable pick up in export sales. Most firms continued to operate with unchanged workforce numbers, suggesting a focus on boosting productivity back to pre-Covid levels. In the plus side, inventories were increased at the quickest pace in a year-and-a-half as firms prepare for a further recovery in demand over the coming months.
In neighbouring United Arab Emirates, the non-oil private sector economy improved at a slower pace compared with the previous month. Local demand was better and while job figures continued to fall, output levels rose. There was further deterioration in activity in Egypt’s non-oil private sector, extending a downturn in place since the end of 2020. The rate of contraction was the softest in three months, though, as weak demand was partly offset by improving conditions in some areas of the economy.