Riyadh-Mubasher: Saudi Arabia's Purchasing Managers’ Index (PMI) rose to 54.4 in February, up from January’s survey-record low of 53.9, Emirates NBD’s latest report showed.
Though signalling a rebound in growth, the latest figure was well below the long-run series average of 58.8. Nevertheless, it pointed to a solid improvement in business conditions overall.
February data were consistent with a pick-up in growth of Saudi Arabia’s non-oil private sector, following the weakest improvement in business conditions on record seen in the first month of 2016, according to the report.
Rates of expansion in output, new orders and employment all accelerated, leading to sharper rises in purchasing activity and input stocks. This means growth rates were still subdued relative to their respective long-run averages.
On the price front, total input costs rose only modestly. As a result, companies were able to lower their tariffs at the fastest pace in the series history amid greater competition.
"The improvement in non-oil sector expansion in February is encouraging, particularly as external demand appears to have picked up after a particularly weak start to the year. Price discounting has also likely contributed to order growth last month," said Khatija Haque, head of MENA Research at Emirates NBD.
Overall, the data suggest that the non-oil economy in Saudi Arabia is growing despite low oil prices, albeit at a slower rate, he added.
