Saudi business confidence touches strongest level since January 2021

Saudi business confidence touches strongest level since January 2021

Growth momentum in Saudi Arabia’s non-oil private sector regained strength in February, as improvements in business confidence and customer demand led to faster expansions in output, new business and purchasing. Cost inflationary pressures meanwhile eased for the second month running, while expectations for future output climbed to their highest since the start of 2021. The headline seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose three points from 53.2 in January to 56.2 in February, marking the first uplift in the index since last September. The latest reading signalled a strong improvement in operating conditions that was the fastest recorded for three months. Underlying data showed that the improvement was driven by a surge in new business growth, after concerns about the Omicron variant led to a slowdown at the beginning of the year. The acceleration in growth was notably the first recorded for five months. The rebound in sales was often linked to rising customer demand and falling COVID-19 case numbers, while some panellists cited increased marketing efforts and competitive pricing strategies.In contrast to the overall sales trend, new export orders decreased for the second month running. Panellists reported facing greater competition in external markets, while the