Saudi Arabia's Non-Oil Private Sector Maintains Growth in April: PMI Remains Steady at 57
In April, Saudi Arabia's non-oil private sector continued to grow, with a Purchasing Managers' Index (PMI) of 57, unchanged from March.
This figure indicates a healthy non-oil economy, as any reading above 50 signals growth.
The PMI had reached a five-month high of 57.2 in February and was 55.4 in January.
Senior economist David Owen of S&P Global Market Intelligence predicts that this growth trend could lead to a non-oil GDP growth rate exceeding the anticipated 4.5 percent for this year.
The text discusses the findings of a report on the non-oil private sector in the Kingdom, which showed an increase in new orders and inventory expansion due to expectations of strong sales performance.
However, cost considerations led to a decline in job creation.
Input price inflation eased to a nine-month low, but there was an increase in employment-related costs to incentivize workers.
Other factors contributing to the sector's growth included competitive pricing, promotional activity, investment, and expanding client bases, particularly in the domestic market.
Companies in Saudi Arabia expressed a positive outlook for the future due to improved sales performances in April.
The strength in demand, strategic marketing initiatives, and corporate expansions in the wholesale and retail sectors are contributing to the positive trajectory of the Saudi economy.
The sustained expansion and evolving market dynamics indicate a favorable environment for continued economic prosperity and stability in Saudi Arabia's non-oil economy.