Saudi Arabia's non-oil business activity buoyed by global bond issue

Growth in Saudi Arabia's non-oil private sector picked up in November from a record low in October after a mammoth $17.5 billion bond issue by the government improved sentiment in the business community, a survey of companies showed on Monday. The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index rose to 55.0 last month from 53.2 in October, which was the lowest level since the survey was launched in August 2009. A level above 50 means business is expanding.
The bond sale in late October, Riyadh's first overseas sovereign bond issue, eased fears about Saudi Arabia's ability to finance itself in an era of low oil prices. It gave the government room to suspend domestic bond issues, causing money market rates to begin pulling back from multi-year highs. Output growth rose to 60.3 in November from 57.1, while growth in new orders jumped to 59.1 from 54.8, mostly because of stronger domestic rather than export orders. Employment growth accelerated slightly.