Saudi non-oil private sector record highest level in 8 years

It rose to 59.8 points in February 2023 from 58.2 points recorded in the previous January.

Riyadh: The activity of the non-oil private sector in the Kingdom of Saudi Arabia (KSA) accelerated during February to the highest level in 8 years, in light of increased demand associated with the improvement of economic conditions, the Anadolu Agency reported.

Data from Standard & Poor’s Global showed that the purchasing managers’ index reading in Saudi Arabia which monitors the performance of non-oil private sector – rose to 59.8 points in February from 58.2 points in January.

The survey showed that the new orders sub-index rose to 68.7 last month, the highest reading in more than eight years from 65.3 in January, continuing a recent upward trend based on strong demand momentum.

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Reuters attributed the significant rise in new orders to the improvement in economic conditions for companies, as the production sub-index recorded a strong increase, reaching 65.6 in February, from 63.6 in January, which led to further expansion in employment and purchasing.

The survey indicated that the improvement in economic conditions leads to confidence in future business activity over the next 12 months.

Saudi Arabia plans to focus on initiatives to develop the non-oil economy in 2023 but it will not enhance financial spending, according to what the Minister of Economy and Planning, Faisal Al-Ibrahim said in previous statements, adding the government intends to use its unexpected oil revenues for this year to accelerate the diversification of its economy away from fuel.

Purchasing Managers’ Index is based on five main pillars, which are new orders, inventory and production levels, suppliers’ delivery volume, and the employment and work environment.

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