Saudi business activity rises at quickest pace in three months in April

RIYADH: Business activity across Saudi Arabia’s non-oil private sector rose at the sharpest rate in three months, the latest IHS Markit latest Purchasing Managers’ Index (PMI) survey showed.
Firms also expanded staff numbers for the first time in five months and to the greatest extent since November 2019.
The headline seasonally adjusted index rose to a three-month high of 55.2 in April, up from 53.3 in March, to indicate a marked improvement in business conditions in the non-oil private sector economy.

“The Saudi Arabia PMI rebounded in April to indicate a strengthening of growth across the non-oil economy. New orders picked up at the quickest rate for three months as business conditions continued to recover from COVID-19,” said IHS Markit Economist David Owen. “Despite a boost to demand, the business outlook weakened from March as fewer respondents projected that output would grow in the coming 12 months. Current concerns among businesses included a possible further wave of COVID-19 that could exacerbate issues with foreign travel.”
Despite problems with the arrival of goods at some companies due to global supply chain issues, average vendor performance improved for the third time in four months, IHS Markit said.
Firms reported that an easing of COVID-19 restrictions had allowed local suppliers to increase their capacity. Still, global supply problems contributed to a marked rise in freight charges during April, which was exacerbated by increasing oil prices.
There was also an uptick in raw material prices which contributed to a quicker rise in overall input costs compared to March.