Saudi PMI up to 59.6 pts in April

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly the S&P Global Saudi Arabia PMI, rose to 59.6 points in April 2023. 

Latest data indicated a continued improvement in overall corporate performance, with new orders increasing at the fastest rate since September 2014, as increased domestic demand offset a slight decline in export sales, and job creation continued in April.

The sharp and accelerating increase in new business volume was the main driver of the rise in the main PMI in April. Companies reported that positive factors supporting customer demand included rising tourist numbers and increased consumer spending, as well as new business opportunities related to major infrastructure projects.

The firms also indicated that the accumulation of inventory helped facilitate new business in a timely manner, and this was reflected in the strong increase in procurement inventory in April, where the rate of expansion was the second fastest since November 2022.

Meanwhile, Saudi Arabian businesses remain optimistic about their growth outlook for the next year. Although the degree of optimism eased to a four-month low, it remained well above the 2022 average, and the positive outlook reflected strong sales, along with confidence regarding local business conditions and the long-term impact of the government's economic policy objectives.

*Change on a monthly basis

The PMI is a weighted average of the following five indices: