Saudi Arabia and India agree to study feasibility of establishing power grid    Saudi Awwal Bank records SR5.9 billion net profit after Zakat and Income Tax for YTD Q3    Economy minister emphasizes global partnerships to address pressing challenges Private investments in non-oil sector soar 70%    Saudi Arabia's GDP grows 2.8% in Q3, driven by non-oil sectors    PIF, HKMA sign MoU to establish $1 billion investment fund    Israeli soldiers forced Palestinian men to take off clothes as they evacuated war-torn Jabalya    North Korea fires suspected intercontinental missile    India celebrates Diwali, the festival of lights    'It was like a tsunami': Spaniards recount horror of deadly floods    Bahrain Crown Prince receives Saudi Interior Minister    In-person classes will remain suspended in Jeddah, Rabigh and Khulais schools on Thursday    HR Ministry takes penal action against 568 violators of Domestic Workers' Regulation    Derby Week makes its debut in the Roshn Saudi League    Al Nassr eliminated from King's Cup after a defeat to Al Taawoun    Teri Garr, Young Frankenstein and Tootsie star, dies at 79    Othman Al Omeir receives Legacy of Change Medal at the UK Parliament for advocacy in media    Neymar joins Saudi fashion trend, donning traditional attire at Al Hilal match    Indonesia Days event celebrates cultural diversity at Al Suwaidi Park    Saudi Football Federation reappoints Hervé Renard to lead national team    Tarzan star Ron Ely dies aged 86    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Muted Eid celebrations for millions of Nigerian Muslims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi non-oil private sector accelerates
Published in The Saudi Gazette on 06 - 04 - 2016

oil private sector accelerated in March, but remained only slightly quicker than the survey-record low seen at the start of the year. Higher output was the main driver of the overall improvement in business conditions – the latest rise was the sharpest in four months, a survey sponsored by Emirates NBD and produced by Markit revealed.
New orders, employment and input stocks also increased, but the respective rates of expansion were among the weakest in the series history. With regard to prices, firms pointed to the downwards impact of competition. Input costs rose at the slowest pace on record, while charges fell for the fifth straight month.
The survey contains original data collected from a monthly survey of business conditions in the Saudi private sector.
The headline seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index (PMI) – a composite gauge designed to give a single-figure snapshot of operating conditions in the non-oil private sector economy – edged up to 54.5 in March, from 54.4 in February. The latest reading signaled a further pick-up in growth since the record low seen in January (53.9), but it was still well below the long-run trend (58.7). As a result, the improvement in business conditions in Q1 (54.3) was the weakest on average since the survey began in 2009.
The rise in the headline index was underpinned by output growth in March. Activity increased at the strongest rate in four months, with better marketing and new project start-ups cited as the key contributing factors. PMI edged up from 54.4 to four-month high of 54.5.
There were robust expansions in output and new orders as well. Weakest rise in total input costs since series began in 2009.
In contrast, growth of new business eased at the end of the first quarter. Though still robust overall, the rate of expansion was the second weakest in 80 months of data collection. Some panelists commented on a slowdown in market conditions stemming from low oil prices. Nonetheless, there were multiple reports of improving client demand. New export work showed a similar trend, with the latest increase solid but slower than the long-run average.
Saudi Arabia's non-oil private sector firms raised their input buying in line with higher output requirements during March. The latest increase was the quickest so far in 2016, but still subdued in the context of historical data. Subsequently, the rate of pre-production inventory building was one of the slowest in the series history.
Jobs growth moderated to a three-month low in March. The vast majority of monitored companies (96%) reported no change in staffing levels since February. Meanwhile, outstanding business rose only fractionally.
Finally, amid reports of increased supplier competition, the rate of input price inflation eased to a survey-record low in March. This ensured that charges fell for a fifth successive month, thereby extending the longest sequence of decline since the survey's inception back in 2009. Competitive pressures were again at work, leading firms to cut tariffs in order to attract new clients.
Commenting on the Emirates NBD Saudi Arabia PMITM, Khatija Haque, Head of MENA Research at Emirates NBD, said "the March PMI points to solid growth in Saudi Arabia's non-oil sector, despite low oil prices and budgetary pressure. Output and order growth remain robust, which is encouraging, although this is likely underpinned by still high oil production feeding through to the related manufacturing industries. Nevertheless, we expect GDP growth in the Kingdom to slow to 1.9% this year from 3.4% in 2015."


Clic here to read the story from its source.