Saudi PMI falls to 58.4 points in February

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, dropped to 58.4 points in February.

This pullback was mainly due to a slowdown in new business growth after witnessing one of the fastest rates recorded at the beginning of the year. The index indicated that business conditions in the non-oil private sector have notably improved since the previous month.

This was confirmed by strong growth in customer sales and business activity. Improved market demand led to a sharp increase in employment levels, as corporates sought to expand operational capacity and prepare for growth opportunities, as optimism towards future activity rose to its strongest level since late 2023. Meanwhile, overall input cost pressures remained high and output prices rose further.

Survey participants pointed to resilient demand conditions, amid improved sales and gaining new customers, thus helping boost production across the non-oil sector. They also noted that increased tourism and improved marketing efforts drove growth. While production expansion slowed slightly, it remained at the highest level since mid-2023.

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