Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector activity saw robust growth in March, triggered by a surge in new orders as lower prices and improved economic conditions boosted demand.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slightly dropped to 58.1 in March from 58.4 in February, but remained marginally above its series average of 56.9, according to the latest Riyad Bank Saudi Arabia PMI report.
Strong competition across the non-oil economy led to a discounting of selling prices, with a decrease recorded for the first time in six months. At the same time, the rate of input cost inflation slid to its weakest in just over four years.
New orders volumes witnessed a remarkable increase, although the rate of growth softened further from the near 14-year record seen in January.
Increased sales volumes fed through to a relatively steep rise in employment numbers during March. Staffing growth was little changed from February's 16-month high, as firms widely commented on efforts to build their sales teams and overall capacity.
Naif Al-Ghaith, Chief Economist at Riyad Bank, stated that the PMI reading reflects sustained positive momentum in business conditions, highlighting the sector's robust economic health and its vital role in the ongoing diversification efforts of the Kingdom as envisaged by Vision 2030.
“Sustaining and nurturing these positive trends, Saudi Arabia is laying the groundwork for a multifaceted and thriving economy that meets the aspirations of its people and the strategic goals of the nation. With each uptick in the PMI and every incremental GDP growth, the Kingdom moves closer to realizing its ambitions of a diversified, sustainable economic future,” Al-Ghaith added.
The Riyad Bank Saudi Arabia PMI® is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The PMI is a weighted average of five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).
