Saudi Arabia’s non-oil private sector showcased continued growth in April, propelled by robust demand within the domestic markets, as a recent economic report highlights.
Steady at a score of 57 for April, the same as the previous month, the Kingdom’s Purchasing Managers’ Index (PMI) reflects a vibrant non-oil economy, as reported by the Riyad Bank Saudi Arabia PMI survey conducted by S&P Global.
The PMI had reached a five-month peak at 57.2 in February, following a January figure of 55.4.
S&P Global notes that PMI values above 50 represent growth in the non-oil sector, while values below 50 indicate a contraction.
The latest Saudi PMI has sustained a robust figure of 57.0 for the second consecutive month, signifying a flourishing non-oil economy.
, stated David Owen, a senior economist at S&P Global Market Intelligence. This consistent performance suggests a likely increase in non-oil GDP, potentially surpassing the 4.5 percent growth target for the year.
Owen also highlighted significant growth in new orders and inventory build-up as a strategic response to the escalating demand in the market.
The report detailed that the anticipation of robust sales led companies to ramp up their purchasing activities in April. Conversely, a focus on cost management resulted in a slowdown in job creation for the month.
Input price inflation witnessed a downturn, reaching a nine-month low in April, as per S&P Global’s findings.
Owen mentioned that despite a dip in employment, there has been an uptick in employment costs aimed at motivating the workforce. This approach is designed to enhance productivity and retain skilled professionals within the burgeoning economy.
The report further recognized that competitive pricing, promotional strategies, investments, and an expansion of client bases, especially within the domestic market, were key drivers of the non-oil private sector’s progress in the Kingdom during April.
Looking ahead, companies in Saudi Arabia participating in the survey generally expressed optimism, fueled by ongoing improvements in sales performances in April.
Owen remarked on the sustained strength in demand and strategic marketing efforts, along with corporate growth in wholesale and retail sectors as solid contributors to the positive economic trajectory in Saudi Arabia.
The sustained expansion, coupled with evolving market dynamics, underscores a favorable environment for continued economic prosperity and stability in Saudi Arabia’s non-oil economy,
Owen concluded.