Saudi Arabia: Non-oil business activity inches up in April
May 3, 2017
The Purchasing Managers’ Index (PMI) sponsored by Emirates NBD and produced by IHS Markit rose from March’s 56.4 to 56.5 in April. As a result, the index remains comfortably above the 50-threshold that indicates expansion in business activity in the non-oil producing private sector.
April’s print reflected stronger growth in new orders and output compared to the previous month’s result. As a result, firms increased purchasing activity, with inventories climbing to an over four-year high. Despite April’s strong reading, Tim Fox, Head of Research and Chief Economist at Emirates NBD, warns that, “below the surface it remains clear that companies are having to work harder to generate these gains, with little capacity to increase employment and profit margins continuing to be squeezed.”