06/02/2012 11:49 AST

Business activity growth in Saudi Arabia surged to its highest level in six months last month as higher government spending drove domestic demand.

Private sector expansion also accelerated in the UAE but at a slower rate, data showed from HSBC's purchasing managers' index for the two countries.

The data suggests Saudi's economy is in stronger health.

"The robust print (in Saudi Arabia) was driven in large part by strong gains in current output, but new orders also rose strongly, suggesting that the economy is likely to maintain momentum over the months ahead," Middle East economists Simon Williams and Liz Martins wrote in a research report yesterday.

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