Riyadh – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia dipped from 57.2 in February to 57.0 in March 2024, according to Riyad Bank’s latest data.
The PMI reading highlighted a robust improvement in operating conditions across the Saudi non-oil private sector at the end of the first quarter (Q1) of 2024.
Last month, output levels at non-oil businesses expanded considerably, as most companies attributed the higher activity to robust order intakes and strong demand conditions.
New orders placed at non-oil firms increased sharply during March, with the expansion rate accelerating for the second month running.
In the same vein, demand from foreign customers enhanced, marking the first instance of sustained month-on-month growth since mid2023.
The expectations of the non-oil companies for the coming 12 months were positive and the strongest registered since last November.
Despite the increase in input prices, the rate of inflation was the slowest seen for eight months. This was mainly due to a weakening of wage pressures, as firms reported only a slight rise in staff costs that was the mildest seen since the beginning of 2023.
Naif Al Ghaith, Chief Economist at Riyad Bank, said: “Business activity experienced a substantial uptick, marking the most significant growth in six months. The positive momentum also prompted accelerated purchasing activities and additional hiring, underscoring a buoyant market outlook.”
“Furthermore, the heightened business activity and increased demand resulted in a notable escalation in purchasing growth, reflecting a dynamic marketplace responding to growing consumer needs,” Al Ghaith underlined.
He noted: “The surge in orders and customer acquisition not only bolstered current operations but also laid the foundation for continued expansion and potential business growth in the foreseeable future.”
“Moreover, the concurrent easing of cost pressures, particularly in terms of wages, provided companies with greater flexibility and resources to invest in their operations and workforce, fostering a conducive environment for sustained economic progress and development in Saudi Arabia,” the economist added
