Saudi Non-Oil Personal Sector Retains Up Regular Progress in March
The seasonally adjusted IHS Markit Saudi Arabia Buying Managers’ Index (PMI) fell barely to 53.3 in March from 53.9 in February, remaining above the 50 mark that separates enlargement from contraction.
The general index has fallen from a latest peak of 57.1 in January, indicating the restoration from the COVID-19 pandemic has misplaced some momentum.
“The pandemic and related restrictions continued to trim new enterprise development, in keeping with respondents, contributing to a extra downbeat outlook for enterprise exercise over the subsequent 12 months,” mentioned David Owen, economist at survey compiler IHS Markit.
“This largely mirrored doubts about shoppers’ willingness to spend in addition to the short-term increase to the economic system from the vaccine rollout, with some corporations anticipating market exercise to stay subdued till the second half of the yr.”
The output subindex slipped to 56.2 from 56.9, dropping farther from the 15-month excessive hit in January and beneath the collection common of 61.5.
The employment subindex, whereas remaining in contractionary territory, was slightly below the 50 mark and at its second-highest since February final yr.
Greater than 87% of the corporations surveyed gave a impartial forecast for future output, indicating warning amongst some corporations in regards to the velocity of the restoration from the pandemic, whereas 11% anticipated exercise to rise.
“Whereas companies had been hopeful that output would increase over the approaching 12 months, the diploma of optimism continued to dwindle throughout March. Notably, the Future Output Index fell to the bottom since final June, however was above the 50.0 no-change threshold,” the PMI report mentioned.
(Reporting by Yousef Saba; Enhancing by Hugh Lawson)