Saudi Arabia: PMI remains robust in April
May 5, 2015
The Purchasing Managers’ Index (PMI) elaborated by the Saudi British Bank (SABB) and HSBC fell from March’s six-month high of 60.1 to 58.3 in April. Despite the decline, the PMI remains well above the 50-threshold, indicating an expansion in business activity in the non-oil producing private sector.
April’s result showed that economic dynamics in the non-oil private sector economy remained strong, although the pace of expansion moderated compared to the previous month. According to SABB and HSBC, April’s healthy print reflected mainly strong growth in output and new orders. As a result of the robust activity, purchases increased at a strong pace in April, while suppliers continued to react positively to greater demand for inputs. Although remaining in expansion mode, the rate of hiring slowed to the lowest level since November.