RIYADH: An economic tracker indicated strong demand conditions across domestic markets propelled Saudi Arabia’s non-oil private sector’s growth momentum in April.
As per S&P Global’s Riyad Bank Saudi Arabia PMI report, the Kingdom’s Purchasing Managers’ Index stayed constant at 57 in April from March, indicating a thriving non-oil economy in the nation.
According to S&P Global, any PMI reading above 50 denotes expansion in the non-oil sector, while readings below 50 denote contraction.
“The most recent Saudi PMI has sustained a robust figure of 57.0 for the second consecutive month, signifying a flourishing non-oil economy,” stated David Owen, senior economist at S&P Global Market Intelligence. This upward trend suggests that the non-oil GDP will rise more than the projected 4.5 percent this year. He continued that the spike in new orders and inventory growth is notable, which point to a proactive response to the market’s growing demand.
The report claims that while businesses increased their purchasing activities in April due to expectations of strong sales performance, job creation fell during the same month due to cost concerns. S&P Global noted that in April, the overall inflation rate in input prices decreased to a nine-month low.
“The employment costs have increased noticeably to encourage the workforce despite declining employment figures. Owen continued, “This approach seeks to maintain skilled workers’ employment in the growing economy and to increase productivity.
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