Saudi Arabia's economic momentum saw a minor decrease as indicated by the latest Riyad Bank Composite PMI data released on January 5, 2025. The Purchasing Managers' Index (PMI), which reflects the economic health of the private sector, fell to 58.4 in December 2024, down from 59.0 in November 2024. This slight dip suggests a small slowdown in growth within the kingdom, although the index remains well above the 50-mark that separates growth from contraction.
Despite this decline, the PMI figure for December is yet robust, suggesting that business conditions in Saudi Arabia continue to improve, albeit at a slower rate compared to the previous month. Economists and market watchers will likely be keen to understand the factors contributing to this decrease, while businesses may need to reassess their strategies for sustained growth in the evolving economic landscape.
The PMI's continued resilience above the 50-threshold suggests underlying strengths in Saudi Arabia's private sector, potentially supported by ongoing government efforts to diversify the economy. As the new year unfolds, market analysts will be closely monitoring subsequent PMI releases for any further fluctuations or patterns that could indicate broader economic trends.