Saudi Arabia: Economic conditions in the non-hydrocarbon sector improve mildly in March
April 5, 2016
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by Markit inched up from February’s 54.4 to 54.5 in March. With the slight improvement observed in March, the PMI rests comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
March’s result mainly reflected faster growth in output. While new orders employment and input stocks all increased in the same month, growth rates were among the weakest in the series history. According to Emirates NBD, “the March PMI points to solid growth in Saudi Arabia’s non-oil sector, despite low oil prices and budgetary pressure. Output and order growth remain robust, which is encouraging, although this is likely underpinned by still high oil production feeding through to the related manufacturing industries.”