Saudi Arabia’s non-oil sector rebounds by 5-month fastest growth in February

Saudi Arabia’s non-oil sector rebounds by 5-month fastest growth in February

Riyadh – Mubasher: Saudi Arabian non-oil businesses experienced a notable uptick in growth momentum during February 2024, with business activity surging at the fastest rate in five months after a dip to a two-year low in January.

The headline figure, the seasonally adjusted Saudi Arabia Purchasing Managers’ Index (PMI), jumped from its recent low of 55.4 in January to 57.2 in February. This reading comfortably exceeded the 50 mark, signifying growth across the non-oil private sector economy, according to a report by Riyad Bank.

The acceleration in new order growth fueled a robust increase in employment, although competitive pressures persisted, hampering demand and pricing decisions.

Expectations regarding future activity remained positive, while supply chains remained robust, facilitating a significant rise in inventories.

Business activity accelerated sharply, marking the strongest growth since September 2023, as firms attributed the rise in output to improving client demand and increased tourism activity.

Similarly, new work inflows increased at a faster pace compared to January, although softer than the final quarter of 2023.

Despite reports of new client wins and improved market conditions, some firms experienced a decline in sales due to heightened competition. Export orders remained subdued, despite a slight uptick in February.

The surge in output and new business spurred