Saudi Arabia’s Non-Oil Economy Shows Robust Performance in January 2021; IHS Markit’s Outlook Remains Hopeful

Data pertaining to the headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Manager’s Index (PMI) showed a marginal increase from 57.0 in December 2020, to 57.1 in January 2021; the highest recorded since November 2019.

According to media reports, this expansion was driven by a spike in new orders in January 2021, resulting from improving market conditions, a rise in online sales, and higher demand for exports.

David Owen, Economist at IHS Markit, highlighted that the acceleration in non-oil activity growth in 2021 was indicative of a recovery in business conditions in Saudi Arabia, following the impact of COVID-19. Low case numbers in the country proved favourable as well. Owen noted that businesses remained hopeful that the roll-out of the COVID-1...