Skip to content Skip to Search
Skip navigation

Growth in Saudi non-oil private sector still robust in April

By Reuters
Non-oil industries saw strong growth but it is slowing. Picture: Creative Commons Creative Commons
Nearly 33 percent of business owners expect production and demand to increase in the following three months.

Saudi Arabia’s non-oil private sector continued to see robust growth in April, albeit at a slower pace than in March as fears over inflation began to weigh on demand, a survey showed on Monday.

The headline seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy fell to 55.7 in April from 56.8 in March, for its lowest reading in three months.

“The Saudi Arabia PMI signalled another strong improvement in the health of the non-oil sector in April, but one that also showed the first signs of price pressures swaying clients’ spending decisions. The rate of new order growth was the softest recorded since January, as some panellists indicated a drop in sales due to recent increases in charges,” wrote David Owen, economist at survey compiler S&P Global.

The output sub-index also expanded at a still strong pace of 59.7 in April, although down from 62.4 in March and below the series average of 61.3.

“Indeed, a further marked uptick in output prices during April, in light of rising commodity prices and global inflation fears, risks dampening sales further in the coming months,” Owen said.

“Business confidence in future activity levels was down to a three-month low and one of the lowest ever recorded, indicating a marked degree of uncertainty over whether the current rate of output growth can be sustained”.

The employment sub-index, however, swung to growth in April after dropping slightly below the 50 mark that separates growth from contraction in March. The growth, while the quickest pace in 10 months, was marginal however.

Some respondents said additional workers were hired to boost capacity and employment rose in all four sectors covered by the survey.

Latest articles

Al Rajhi Bank’s total operating income increased 6.6 percent annually

Al Rajhi Bank Q1 profit up 6% as operating income rises

The net profit of Al Rajhi Bank, the second-largest lender by assets in Saudi Arabia, rose 6 percent year on year to SAR4.4 billion ($1.2 billion) in the first quarter of 2024, driven by higher operating income. Total operating income increased 6.6 percent annually due to a rise in net financing and investment income.  Total operating expenses, […]

GCC economic data

GCC economic data

The latest economic indicators for the Gulf Co-operation Council countries: the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain

Tunisair passenger numbers were up slightly in the first quarter of 2024

Tunisair reports ‘steady’ revenue rise in first quarter

Tunisian national flag carrier Tunisair has reported a “steady” start to the year with a 5.6 percent increase in revenue for the first quarter. The airline is attempting to restructure in order to resolve legacy financial difficulties and refresh its fleet. Revenues rose to TND 316 million ($100 million) at the end of March, according […]

Aldar sold a penthouse in Nobu Residences for a record AED137m, which reflects the growing appeal of Abu Dhabi’s luxury segment

Aldar Q1 profit surges 88% on strong property sales

Aldar Properties, the largest developer in Abu Dhabi, said net profit surged 88 percent to AED1.6 billion ($435.6 million) in the first quarter of 2024, compared to AED836 million a year ago, due to strong property sales. Revenue rose 83 percent year on year to AED5.6 billion as development sales rose 39 percent annually to […]