Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector witnessed one of its best months of business performance since 2014 in October, with the Purchasing Managers’ Index (PMI) jumping to 60.2, its second-highest level in more than a decade.

The latest survey by Riyad Bank and S&P Global stated that operating conditions improved substantially, underpinned by growing demand, rising hiring activity, and robust output growth.

The October reading, up from 57.8 in September, reflects the sustained momentum of the non-oil economy as Vision 2030 reforms continue to drive diversification away from oil revenues.

The pace of growth in new orders received by non-oil businesses accelerated for the third consecutive month in October, with 48% of surveyed firms reporting sales improvements.

Naif Al-Ghaith, Chief Economist at Riyad Bank, said: “Saudi Arabia’s non-oil private sector recorded a solid improvement in business conditions in October, with the PMI rising to 60.2, marking one of the strongest readings in over a decade. The acceleration was driven by broad-based gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy.”

He noted that the rise in demand has encouraged firms to expand production and workforce capacity at the fastest rate since 2009, as businesses have expanded capacity to meet new workloads.

“Looking ahead, non-oil firms remain confident about future growth prospects. Optimism is underpinned by solid domestic demand and the momentum of ongoing projects,” Al-Ghaith added.

The Riyad Bank Saudi Arabia PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).