Riyadh – Mubasher: Headline seasonally adjusted IHS Markit Purchasing Managers’ Index (PMI) in Saudi Arabia registered 44.4 in April, maintain its level below 50, after slightly rising in March to 42.4.
The decline of the index, which reflects the performance of non-oil private sector economy, shows the impact of the lockdown and preventive measures against the coronavirus (COVID-19) leading to business closures and shrinking demand, thus lower volumes of activity.
Data showed a record decline in Saudi Arabia private sector business activity, according to a report by IHS Markit.
“The latest fall in new orders from abroad was the fastest since the survey began in August 2009,” the report explained.
New work decreased sharply in April, with export sales particularly hard hit by international border closures.
“The small minority of Saudi Arabian companies reporting business activity growth in April often linked this to higher spending on healthcare products and services. There were also sporadic reports that a successful shift to online operations had helped to limit the overall decline in new work, especially among service providers,” Tim Moore, Economics Director at IHS Markit, commented.
