Riyadh – Mubasher: Saudi Arabia’s non-oil private sector saw a slight growth in February, boosted by more subdued output growth, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit.
The headline seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) rose to 53.2 points in the second month of the year, compared to 53 points a month earlier.
New orders registered their lowest level, while foreign demand contracted, the survey showed
It highlighted that companies slashed selling prices at an unprecedented rate in a bid to spur client demand.
“While the pace of expansion in Saudi Arabia’s non-oil sector was slow by historical standards in February, firms were much more upbeat about prospects for the coming year, citing new project wins and stronger growth prospects,” Head of MENA Research at Emirates NBD Khatija Haque said.
However, demand remained weaker than in Q4-17, propelling companies to reduce selling prices in February by the most since the survey began in August 2009, Haque added.
Although the expansion rate was the second-slowest registered in the survey’s history, production growth inched up in February after falling to a record low in the preceding survey, according to Emirates NBD’s recent survey.
The survey ascribed the slowest pace of new business growth to a reduction in demand from both domestic and foreign markets.
Selling prices across the kingdom’s non-oil private sector fell at a record rate during the second month of 2018. Companies cut output charges to boost client demand. The reduction rate was moderate overall and the first registered since September last year.
“Job creation in Saudi Arabia’s non-oil private sector continued during February, thereby extending the current sequence of growth to 47 months. The latest expansion was modest overall, albeit above the average registered over the past two years,” the report concluded.
