(MENAFN) In April, Saudi Arabia witnessed robust growth in non-oil trade activity, underpinned by sustained domestic demand, despite a slight deceleration in the pace of new order growth. The Riyad Bank Purchasing Managers' Index (PMI), adjusted for seasonal variations, remained steady at 57 points, mirroring March's figure and indicating sustained expansion in economic activity, as it remained comfortably above the 50-point threshold.
Although the production sub-index experienced a marginal dip to 61.9 points in April, following March's six-month high of 62.2 points, it still reflected strong demand dynamics, with the wholesale and retail sectors emerging as frontrunners in terms of production growth. Nayef Al-Ghaith, chief economist at Riyad Bank, interpreted the PMI data as a positive sign for Saudi Arabia's non-oil GDP, anticipating a potential surpassing of the 4.5 percent growth mark for the year.
Al-Ghaith also highlighted the noteworthy increase in new orders and inventory, suggesting a proactive response to escalating market demand. Despite a moderation in the new orders sub-index to 61.0 points in April from 64.0 points in March, domestic trade conditions remained robust, bolstering sales figures. Moreover, the manufacturing sector continued to drive export orders upward, indicating resilience and competitiveness on the international front.
Overall, the sustained growth in non-oil trade activity bodes well for Saudi Arabia's economic resilience and prospects. Despite some moderation in certain indicators, such as new orders, the overarching trend points towards a buoyant economy, supported by robust domestic demand and proactive market responses.
MENAFN05052024000045015682ID1108174715
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.