Saudi Arabia’s non-oil private sector gains momentum in Feb; PMI

Saudi Arabia’s non-oil private sector gains momentum in Feb; PMI

The non-oil private sector of Saudi Arabia has regained strength in February, as progress in business confidence and customer demand led to faster expansions in output, new business and purchasing.

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose to 56.2 in February from 53.2 in January, marking an 18th consecutive month of expansion. The reading was below the series average of 56.8.

The non-oil private sector expanded at the fastest pace since November, ending four straight months of decelerating growth, as fears over the COVID-19 variant faded and demand rose, a survey showed.

David Owen

Economist – IHS Markit “The latest PMI figures confirmed that the impact of the Omicron wave on the non-oil economy was only mild. Following two months of relatively soft (but still positive) growth, momentum rebounded strongly in February as cases began to fall. Overall sales picked up at the quickest rate since last November, despite a further slight fall in export demand, while activity growth moved closer to the peak levels seen towards the end of last year.”

The output sub-index, which measures business activity, jumped to 61.4 in February, in line with the series average, from 53.6 in January. The employment subindex was in expansion