Riyadh – Mubasher: Saudi Arabia’s non-oil private sector saw a slight growth in February with a rise in new orders, according to a recent survey sponsored by Emirates NBD and produced by IHS Markit. 

The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers' Index (PMI) rose to 56.6 in February, from 56.2 points in January, which registered its highest level in 14 months, or since December 2017.

 “The main driver for the improvement in February was a stronger rise in new orders, despite the second consecutive decline in new export orders,” head of MENA Research at Emirates NBD Khatija Haque stated.

February reading indicated that the kingdom’s non-oil growth in is still softer than the long-run average.

Buying activity also levelled up in the second month of 2019 as companies looked to keep their purchasing levels on pace with higher output requirements, the survey added.

The survey also highlighted that employment at Saudi private-sector firms  was broadly unchanged last month, recording its lowest level in five years at 50.2 points.

“Export sales were down on the month, indicating that the main impetus continued to come from the domestic market,” the survey added.

Firms in Saudi Arabia’s non-oil private sector also remained reluctant to hire additional employees.

“Finally, February’s survey indicated shorter lead times on purchased items, which anecdotal evidence attributed to requests for faster deliveries and more timely payments to suppliers,” the survey found.