S&P: Saudi non-oil private sector still strong

A survey showed that Saudi Arabia’s non-oil private sector continued its strong growth in April, albeit at a slower pace than in March on concerns over inflation.

The data showed that output and new orders extended strong growth in April, which resulted in the highest purchasing growth since December 2017.

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

“The Saudi Arabia PMI signaled another robust growth in the non-oil sector last month, but one that also showed the first signs of price pressures weighing on clients’ spending decisions. The rate of new order growth was the softest recorded since January, as some panelists indicated a decline in sales due to recent higher 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.