In February, Saudi Arabia businesses record best growth gains in 8 years, with PMI at 59.8

In February, Saudi Arabia businesses record best growth gains in 8 years, with PMI at 59.8

Riyadh: Growth in the Saudi Arabian non-oil private sector economy accelerated to the highest level in almost eight years in February, according to the latest PMI survey data. This comes as companies reported a substantial increase in demand linked to improving economic conditions. Firms also reported faster upturns in output, employment, and purchasing, while optimism toward the year ahead remained robust. However, the strong improvement in demand had the added effect of pushing inflationary pressures higher. The headline index rose to 59.8 in February, from 58.2 in January, to signal the fastest growth in non-oil private sector business conditions since March 2015. Any index reading above 50.0 indicates an improvement in the health of the non-oil sector. The strong PMI reading was partly down to a sharp and accelerated increase in new business inflows. Over 42 per cent of surveyed companies indicated that new orders had risen over the latest survey period, and often attributed this to an improvement in market conditions. Panellists also noted that new projects, increased client numbers, and some price promotions had helped to boost sales. Export orders also increased at a sharp and quicker pace. Notably, total new orders rose to the greatest extent since