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Saudi Arabia's Business Sentiment Climbs in June; Industrial Output Slides in May

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Saudi Arabia's Business Sentiment Climbs in June; Industrial Output Slides in May

Optimism among businesses in Saudi Arabia continued to improve in June, while a decline in industrial production moderated in May, data from the kingdom's General Authority for Statistics showed Thursday.

The country's business confidence index came in at 56.6 points in June, up from 55.6 points in the previous month. The figure represents a monthly rise of 1.8%, following a 2.1% growth in May, and marks the third straight month of improvement after a sharp fall in March.

"The increase reflects prevailing optimism in the business sector, supported by establishments' confidence in the stability of economic activity and continued growth across various sectors," the statistics agency wrote.

The kingdom's industrial business confidence index rose 0.7 points month-over-month to 55 points in June, driven by stronger expectations for sales, purchase orders and overall performance. Meanwhile, the construction sector's index climbed to 57.8 points from May's 56.7 points, reflecting increased optimism regarding orders, sales volume and performance trends.

For Saudi's services sector, a brighter outlook for employment, revenue and general performance led to a 0.9-point increase in the segment's business confidence index in June to 55.5 points.

Separately, the statistics office reported that Saudi Arabia's industrial production index dropped 18.7% year over year in May, a slight moderation from April's 19.1% fall, amid a decline in mining, quarrying and manufacturing activity. Month on month, the index jumped 3.2%.

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