Saudi Arabia: Economic conditions in the non-hydrocarbon sector improve in February
March 3, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit rose from January’s all-time low of 53.9 to 54.4 in February. With the slight improvement observed in February, the PMI rests comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
February’s result mainly reflected faster growth rates in output, new orders and employment. According to Emirates NBD, “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. 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.”