Saudi construction gains speed as housing leads August expansion

Saudi construction activity expanded for a fourth straight month in August, with housing the strongest-performing part of the market and infrastructure work also growing solidly. The Alrajhi Capital Saudi Construction Index rose from 55.2 in July to 55.4; because 50 marks no monthly change, the reading points to continued, broad-based growth rather than a contraction. New orders kept increasing, especially in housing and infrastructure, giving contractors a fuller pipeline of work to carry into coming months. The survey also found the fastest rise in companies’ purchases of materials and services since it began in January, another sign that builders are preparing to meet demand—though it could also put more pressure on costs.