For month 42.. Positive performance of the Saudi non-oil private sector

Riyadh – A report issued by Riyad Bank, yesterday, Wednesday, showed that the purchasing managers index in the non-oil private sector in Saudi Arabia continued its positive performance last March for the 42nd month in a row.

The report stated that the seasonally adjusted Purchasing Managers’ Index reached 57 points in March, slightly below the level of 57.2 points in the previous February, but much higher than the 50 point level that separates growth from contraction.

Index readings above the neutral level (50 points) indicate growth, while readings below indicate contraction.

The report indicated that non-oil-producing companies, in particular, recorded a sharp rise in new business during March, as improved market conditions and increased development spending helped boost demand.

While some companies confirmed a relatively moderate increase in production prices, “it helped sales grow, while orders from foreign customers rose once more.”

The report added: “Inflation in the cost of production inputs faced by non-oil producing companies rose to its highest level in four months during March, driven by rising costs of raw materials and employee wages.”

Regarding employee wages, efforts to compensate workers for the high cost of living led to a rise in salaries at the largest rate since September 2016, according to the report.

The PMI is based on five main pillars: new orders, inventory levels, production, supplier delivery volume, and the employment and work environment.

Anatolia