Palm trees and buildings in Saudi Arabia

Saudi Arabia PMI April 2020

Saudi Arabia: Non-oil PMI edges up from survey-record low in April, but conditions continue to deteriorate

The Purchasing Managers’ Index (PMI), produced by IHS Markit, increased to 44.4 in April from 42.4 in March. Consequently, the index remained below the 50-threshold that indicates an improvement in business activity in the non-oil private sector over the previous month.

April’s result reflected sharp decreases in output, new orders and stocks of purchases due to lockdown measures domestically and abroad. Business activity declined at a survey-record rate, due to closures and tepid demand. New business inflows and exports also decreased notably in April, but the pace of the decline in new work orders moderated slightly from March. Moreover, employment tapered at a quicker rate, due to hiring freezes and redundancies due to lower workloads. Supplier delivery times increased in April, chiefly driven by supply chain disruptions and shortages, which flattered the headline reading as under normal circumstances, an increase in deliver times would reflect upbeat demand, but this was not the case in April.

Tim Moore, Economics Director at IHS Markit, commented that:

“The small minority of Saudi Arabian companies reporting business activity growth in April often linked this to higher spending on healthcare products and services. There were also sporadic reports that a successful shift to online operations had helped to limit the overall decline in new work, especially among service provider.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest