Growth of business activity in Saudi Arabia’s non-oil private sector fell to its lowest level for seven months in July as new orders and output growth slowed, the Saudi British Bank (SABB) HSBC Saudi Arabia Purchasing Managers’ Index for the month of July revealed Sunday.

The Purchasing Managers’ Index, a survey of over 400 private , measures activity in the manufacturing and services sectors, was 58.1 points in July against 59.7 in June. The index is the lowest this year and below the average recorded since data collection started three years ago.

However, the seasonally adjusted index remained well above the 50-point mark separating growth from contraction.

Output growth was slower in July. It was the weakest for nine months at 62.2 against 63.8 in June. New order growth fell to 66.3 in July from 69.2 in June.

But employment growth remained unchanged from the month before at 53.6 points. "The rise in staffing levels was the tenth in successive months, and attributed by panel members to improving economic conditions and higher production requirements."

Meanwhile, data showed that suppliers’ delivery times shortened for the 12th consecutive month, and at a rate that was the steepest since April.

Reports from survey respondents suggested that a combination of competition among vendors, buyer demands and improved payment practices had led to faster lead times.

Input price inflation eased in July to the slowest since last December, as both purchase prices and labor costs grew at slower rates.

In fact, salaries and wages increased only slightly on average over the month. Output price inflation also eased to a seven-month low in July, and was only modest compared to the historical trend.