Job growth in Saudi non-oil sector at highest pace in 5 years
January 4, 2023 | 06:00 AM
January 4, 2023 | 06:00 AM
Last Updated: January 4, 2023 | 09:39 AM
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Saudi Gazette report
RIYADH — Riyad Bank’s seasonally adjusted Purchasing Managers’ Index fell to 56.9 points in December from 58.5 points in November but it is still well above the 50-point level that separates growth from contraction.
Despite the decline in the reading to the lowest level in three months since September, the figures showed that the rate of job creation in the non-oil sector increased in December at the highest pace since January 2018.
At the same time, new order flows rose significantly, with 30 percent of firms surveyed reporting growth in December 2022 compared to November.
Nayef Al-Ghaith, chief economist at Riyad Bank, said: “We note 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 a much greater momentum for jobs and wages than previously thought,” he said.
“In general, December data indicates continued growth for the fourth quarter with optimism about 2023. This made us strongly expect non-oil GDP growth of more than 4 percent in 2023,” Al-Ghaith added.
RIYADH — Riyad Bank’s seasonally adjusted Purchasing Managers’ Index fell to 56.9 points in December from 58.5 points in November but it is still well above the 50-point level that separates growth from contraction.
Despite the decline in the reading to the lowest level in three months since September, the figures showed that the rate of job creation in the non-oil sector increased in December at the highest pace since January 2018.
At the same time, new order flows rose significantly, with 30 percent of firms surveyed reporting growth in December 2022 compared to November.
Nayef Al-Ghaith, chief economist at Riyad Bank, said: “We note 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 a much greater momentum for jobs and wages than previously thought,” he said.
“In general, December data indicates continued growth for the fourth quarter with optimism about 2023. This made us strongly expect non-oil GDP growth of more than 4 percent in 2023,” Al-Ghaith added.
