S. Arabia’s non-oil private sector growth slows in April – PMI

Saudi Arabia’s non-oil private sector expanded at a slower pace in April, as the Riyad Bank Purchasing Managers’ Index (PMI) fell to 55.6 from 58.1 in March — its lowest level in eight months. While the reading remained firmly above the neutral 50.0 mark, it signalled a deceleration in growth, driven by weaker new order inflows.

Employment, however, continued to surge, with hiring growth reaching its joint-highest rate in over a decade. Companies ramped up recruitment, particularly in IT and marketing, to meet rising workloads and support business expansion. The surge in staffing led to the fastest rise in wage costs on record, reversing March’s easing in labour-related inflation.

Output continued to grow, supported by new project approvals and strong tourism demand, but at the slowest rate in seven months. Firms cited global uncertainty and intensifying competition as factors weighing on client spending.

Input cost inflation strengthened as both wage and material prices increased. Purchase prices rose sharply, rebounding from a 43-month low in March, while output prices climbed modestly due to higher operating costs.

Businesses stepped up purchasing and stock-building activity in anticipation of stronger future demand. Confidence in the year-ahead outlook edged up, though it remained below the long-run average.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama