SABB's PMI index rises to 6-month high in March

The Saudi British Bank (SABB/HSBC) Saudi Arabia Purchasing Managers’ Index (PMI), which measures the performance of the kingdom’s non-oil private sector companies, advanced to a six-month high in March, rising to 60.1 from 58.5 in February on higher demand and expansion in foreign new orders.

The PMI index measures performance based on output, orders, prices, stocks, and employment.

The quarterly average rose to 58.8 from 58.2 in the fourth quarter last year, reflecting continuous economic growth. Companies continued a 12-month period of job creations as they hired more staff in March at a rate similar to that in February.

Suppliers reported greater demand for inputs and backlogs of work. 

Cost pressure increased in March driven by rise in purchasing prices and cost of new staff, according to a report issued by the bank.