RIYADH: 黑料社区鈥檚 overall non-oil business activities witnessed an improvement in April, as strong domestic demand triggered an increase in new orders at the fastest rate since September 2014, an economy tracker revealed.聽聽聽
The latest Riyad Bank 黑料社区 Purchasing Managers鈥 Index report, formerly known as the S&P Global 黑料社区 PMI, revealed that the Kingdom鈥檚 PMI went up to 59.6 in April from 58.7 in March. This is fractionally lower than the eight-year peak in February, when the metric hit 59.8.聽聽聽
According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.聽聽
Naif Al-Ghaith, the chief economist at Riyad Bank, said: 鈥淎pril PMI data highlighted another steep expansion of business activity across the Kingdom鈥檚 non-oil private sector economy. We have witnessed rising tourism numbers, higher consumer spending and new business opportunities related to major infrastructure projects.鈥澛犅犅犅
He added:聽鈥淢oreover, long-term business expansion plans have made the rate of job creation slightly stronger than seen on average in the first quarter of 2023.鈥澛
According to the report, job creation continued in April, as signaled by a rise in total employment numbers for the 13th month in a row.聽
The report, however, noted that new orders from abroad declined for the first time since February 2022 due to intense competition and less favorable economic conditions in overseas markets.聽
鈥淥n the prices front, we have observed growing cost pressures as both input costs and staff wages have been rising again. The recent weakness in the US 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,鈥 said Al-Ghaith.聽
The report added that businesses in 黑料社区 remain upbeat about their growth prospects for the year ahead, despite the fact the degree of optimism slipped to a four-month low, but remained well above the average in 2022.聽
Businesses鈥 future output expectations were still optimistic, said Al-Ghaith, adding: 鈥淭he positive sentiment reflected strong sales pipelines, alongside confidence regarding domestic business conditions and the long-term impact of government economic policy objectives.鈥澛犅
As 黑料社区 continues its economic diversification efforts, in line with the goals outlined in Vision 2030, Jihad Azour, director for the Middle East and Central Asia at the International Monetary Fund, said the Kingdom鈥檚 economy is edging closer to reducing its聽dependence on oil.聽聽
Azour further noted that the growth of the non-oil economy in 黑料社区 is driven by government-led reforms and the growth of private investment in new sectors.
