At the highest rate in 6 months… Saudi private companies are thriving

The conditions of private non-oil-producing companies in Saudi Arabia improved strongly at the end of the first quarter of this year, according to data released today by the Purchasing Managers’ Index.

Business activity expanded at the largest rate in 6 months, showing an acceleration in the growth rate of purchases. In addition, there was a further decline in cost pressures, especially wages, according to the index data.

Non-oil producing companies expect demand conditions to continue to support business activity going forward. Expectations for the next 12 months were positive, the strongest since last November. As a result, companies have hired additional employees to help with workloads. The employment rate rose at a moderate pace that was faster than the survey average for the second month in a row. (Bloomberg)