Saudi Arabia's Construction Sector Gains Momentum in June Amid Rebound in New Orders

Business activity in Saudi Arabia's construction sector saw an acceleration in momentum in June, with all three main areas of construction work showing "stronger" performances, according to Alrajhi Capital and S&P Global's business survey data released Tuesday. The headline seasonally adjusted alrajhi capital Saudi Construction Index rose to 56.3 in June from 51.2 in May, indicating the strongest expansion in construction output since the survey's launch in January. The latest reading also marks the second straight month the index came in above the 50 neutral threshold. "The improvement was broad-based across residential, non-residential and infrastructure activity, supported by a rebound in new orders, the restart of delayed projects, and a more stable operating environment," said Sultan Altowaim, Alrajhi Capital's head of research. "Residential construction remained the strongest-performing segment, while non-residential and infrastructure activity also returned to healthier growth." New work across the sector further recovered in June, with output growth mainly driven by the fastest increase in new orders since February as reduced geopolitical tensions led to an.