Saudi Arabia‘s non-oil private sector saw its fastest growth since 2015 in February.
According to Arab News, the Kingdom’s Purchasing Managers’ Index rose to 59.8 from 58.2 in January.
According to the latest Riyadh Bank Saudi Arabia PMI report, the kingdom’s PIM for December 2022 was 56.9. The index reached 58.5 in November.
According to the index, readings above 50 indicate growth, while readings below 50 indicate contraction.
“Economic conditions remained favorable across all business activities in February 2023 as growth in the Saudi non-oil private sector reached its highest level in nearly eight years,” said Riyadh Bank Chief Economist Naif Al Ghaith.
He further said that despite the tight financial conditions, the balance of supply and demand from ongoing projects around the kingdom looked strong and encouraging, which led to a rapid increase in production. This was offset by improved supplier performance and a rapid reduction in lead times.
According to the report, the increase in PMI was due to a substantial increase in demand associated with improving economic conditions.
The report added that companies say production, employment and purchases in the kingdom increased sharply.
Meanwhile, employment at non-oil companies also grew at the second-fastest rate in five years, mainly because companies increased their hiring to fill vacancies to meet future demand.