Riyadh – Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) surged to 59.6 in April 2023 from 58.7 last March, according to Riyad Bank’s latest data.
The non-oil private sector firms across the Kingdom witnessed a sustained improvement in overall business performance during April.
New orders increased at the fastest rate since September 2014 due to stronger domestic demands. In addition, the PMI reading highlighted a rise in total employment numbers for the 13th month in a row.
The data also underlined another solid increase in purchase prices and staff wages. Nevertheless, business expenses went up at the slowest pace for three months.
Naif Al Ghaith, Chief Economist at Riyad Bank, commented: "We have witnessed rising tourism numbers and higher consumer spending, alongside new business opportunities related to major infrastructure projects.”
Al Ghaith pointed out that the long-term business expansion plans made the rate of job creation slightly stronger than recorded on average in the first quarter (Q1) of 2023.
“The recent weakness in the U.S. Dollar has resulted in a costlier import of raw materials, while efforts to boost staff retention and business performance resulted in another upturn in average wages,” the economist stated.
“Consequently, businesses needed to pass on higher overheads to clients while squeezing margins due to competitive market conditions during this time of the year.”
He concluded: “With that said, businesses' future output expectations were still optimistic. The positive sentiment reflected strong sales pipelines, alongside confidence regarding domestic business conditions and the long-term impact of government economic policy objectives.”
