DUBAI, Feb 5 (Reuters) - Growth in Saudi Arabia's
non-oil business activity accelerated in January, having hit a
three-month low the previous month, a survey showed on Sunday,
supported by an increase in new orders and output.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing
Managers' Index increased to 58.2 in January, from 56.9 in the
previous month and well above the 50 mark separating growth from
contraction.
Earlier this week, the kingdom's statistics agency released
flash estimates of GDP growth in the fourth quarter of 2022,
during which the non-oil activities sector grew 6.2%,
outperforming broader economic growth of 5.4% in the quarter.
"This growth confirms the Saudi position as the
fastest-growing economy among the Group of 20 countries despite
economic headwinds," said Naif Al-Ghaith, Chief Economist at
Riyad Bank.
"This was driven by the ongoing improvement in the business
environment, private-sector employment, and increased foreign
investment with governance and labour market reform," Al-Ghaith
added.
The output sub-index rose to 63.6 in January from 61.0 the
previous month, mainly on higher demand, as the new orders
sub-index jumped to 65.3 from 62.9 in December, with the
strongest increase recorded among service providers.
While companies continued to add staff however, the rate of
job creation eased slightly in January from December's near
five-year high, to 51.2 from 52.0.
Confidence among private firms in the non-oil sector
increased to a two-year high last month with survey participants
forecasting a strong year ahead supported by new order inflows,
high capacity, and lower expected costs.
(Reporting by Rachna Uppal; Editing by Toby Chopra)
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