(Reuters) – The pace of growth in Saudi Arabia's non-oil sector continued to accelerate in October, buoyed by the fastest growth in new orders since March, a survey indicated on Tuesday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index rose to 56.9 in October, the highest reading in six months, up slightly from 56.3 in September. The headline PMI remained well above the 50.0 mark that indicates growth.
The new orders subindex surged to 62.5 in October from 59.3 the previous month, reflecting the highest reading since March, attributed to higher client demand, new marketing strategies, and enhanced infrastructure development.
"The significant increase in new orders this month… underscores the success of Vision 2030's strategic focus on innovation and infrastructure development," stated Naif Al-Ghaith, Riyad Bank's chief economist.
The output subindex increased to 60.2 in October, up from 59.7 in the previous month.
Saudi Arabia's Vision 2030 strategy relies on hundreds of billions of dollars in infrastructure investments and domestic reforms to foster new sectors, diversify revenue streams, expand the private sector, and create jobs.
Finance Minister Mohammed Al Jadaan noted that human resources and implementation had posed challenges for some targets, yet non-oil GDP now constitutes about 52% of the economy.
The rate of job creation in October remained modest overall, but businesses' confidence in the 12-month outlook improved from September.
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