Saudi Arabia: PMI improves in February
The Riyad Bank Saudi Arabia Composite Purchasing Managers’ Index (PMI) improved to 57.2 in February from its two-year low of 55.4 in January. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in private sector operating conditions compared to the previous month.
This recovery was primarily driven by a sharp increase in business activity, attributed to improved client demand and a boost from tourism. Additionally, new order growth accelerated, contributing to a marked increase in employment, which was among the sharpest in eight years.
On the pricing front, February saw a moderation in input price inflation, marking the slowest rate of increase since the previous July. Selling price inflation also eased, with firms facing a dilemma between passing on higher costs to customers or reducing fees to remain competitive. Lastly, there was sustained optimism for future activity.