Saudi PMI stabilizes at 57 points in April, business activity up sharply

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, kept unchanged at 57 points in April 2024.

The non-oil private sector saw a strong operational improvement in April.

Meanwhile, business activity hit sharply at the beginning of the second quarter, according to sub-sector data, the wholesale and retail businesses witnessed the strongest expansion in output.

The latest data indicated a significant monthly expansion in new orders received by non-oil private sector companies in Saudi Arabia.

April witnessed competitive prices, promotional activity, investment, and expansion of customer bases, especially in the local market, which led to an increase in orders during April.

Companies raised their purchasing activity on the expectations of continued strong sales performance, which led to higher inventories at a record pace.

In addition, cost considerations led to a slight decline in hiring in April, but the overall rate of input price inflation eased to a nine-month low.

Expectations of continued improvement in sales performance reinforced growth expectations among surveyed companies.

Purchasing activity rose sharply in April, as companies boosted the inventory of raw materials and other items necessary for production to accommodate the high demand. In fact, stocks of purchases increased at a survey-record rate at the start of Q2 2024.

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