(MENAFN) Recent data from the Riyad Bank Purchasing Managers' Index (PMI) indicates robust growth in Saudi Arabia's non-oil private sector at the close of the first quarter of 2024. Businesses experienced a notable upturn in activity, marked by the sharpest expansion in six months. Key drivers of this growth included heightened order volumes and an influx of new customers, fostering an environment conducive to increased production and hiring.
The surge in business activity prompted a corresponding acceleration in purchasing and recruitment efforts, buoyed by a notable easing of cost pressures, particularly in wages. Despite a slight dip in the headline PMI from 57.2 points in February to 57 points in March, the index remained comfortably above the neutral threshold of 50 points, signaling a significant improvement in overall business conditions.
March saw a notable uptick in production levels, marking the strongest increase in six months, with many companies attributing heightened activity to growing demand. This surge in demand was further underscored by a sharp rise in new orders received by businesses, with expansion rates accelerating for the second consecutive month.
Looking ahead, businesses expressed optimism regarding future demand conditions, fueling positive expectations for business activity over the next 12 months. This optimism translated into a moderate yet steady increase in employment, outpacing the survey average for the second consecutive month. The upbeat outlook suggests continued momentum in Saudi Arabia's non-oil private sector, underpinned by sustained demand and favorable business conditions.
MENAFN04042024000045015682ID1108058135
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.