Riyadh-Mubasher: Rates of expansion in output, new orders and employment all accelerated, leading to strong growth in Saudi non-oil sector, showed a recent study conducted by Markit and sponsored by Emirates NBD.
Total input costs rose modestly, and thus companies were able to lower their tariffs at the fastest pace in the series history amid greater competition.
“The improvement in non-oil sector expansion in February is encouraging, particularly as external demand appears to have picked up after a particularly weak start to the year," said Khatija Haque, head of Mena Research at Emirates NBD.
She added that price discounting has also likely contributed to order growth last month. Overall, the data suggest that the non-oil economy in Saudi Arabia is growing despite low oil prices, albeit at a slower rate.
After adjusting for seasonality, the headline Emirates NBD Saudi Arabia Purchasing Managers’ Index (PMI) posted 54.4 in February, up from January’s survey-record low of 53.9. Though signalling a rebound in growth, the latest figure was well below the long-run series average (58.8). Nevertheless, it pointed to a solid improvement in business conditions overall.
