Saudi Arabia: PMI hits four-month high in February
March 3, 2015
The Purchasing Managers’ Index (PMI) elaborated by the Saudi British Bank (SABB) and HSBC inched up from 57.8 in January to 58.5 in February, which represented the highest reading in four months. As a result, the PMI remains well above the 50-threshold, indicating an expansion in business activity in the non-oil producing private sector.
February’s result showed that growth in the non-oil private sector economy remained strong. According to SABB and HSBC, February’s healthy print reflected strong growth in new orders, output, stocks and employment. While new orders were supported by healthy growth in foreign orders, output accelerated to the most since October. Meanwhile, falling commodity prices drove down total input costs to the lowest point since May 2014.
Author: Ricardo Aceves, Senior Economist