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In April, Saudi Arabia's non-oil business activity sustained a steady pace of growth, buoyed by robust domestic demand, despite a slight deceleration in new order expansion, according to a recent survey. The seasonally-adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index held firm at 57.0, mirroring the March figure and comfortably surpassing the 50.0 mark that signifies expansion in activity. Although the Output subindex slightly dipped to 61.9 from the previous month's six-month high of 62.2, it continued to underscore robust demand conditions, with Wholesale & Retail witnessing the most pronounced growth in output.
- While new order growth moderated in April to a reading of 61.0 from 64.0 in March, domestic business conditions remained resilient, contributing to solid sales figures. Additionally, export orders remained in expansion territory, driven chiefly by the manufacturing sector. Despite the contraction in oil activities, with Saudi Arabia's economy estimated to have declined by 1.8% year-on-year in the first quarter, preliminary data showcased a 2.8% year-on-year growth in non-oil GDP. Nonetheless, quarterly figures indicated a slight softening in momentum, with non-oil GDP expanding by only 0.5% from the previous quarter, attributed in part to a decline in government activities.
Why it matters
Despite these challenges, the survey highlighted a robust 12-month business outlook in April, characterized by positive sentiment across various sectors.
