Riyadh – Mubasher: Saudi Arabia's non-oil private sector declined at the fastest pace for over a decade amid precautionary measures to curb the spread of the novel coronavirus (COVID-19).

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index dwindled to 42.4 in March, falling below the 50.0 mark for the first time, compared to 52.5 in February, according to a report on Sunday. A reading above 50 indicates expansion, while a reading below that signals contraction.

"Output levels and incoming new work both fell at the fastest rate since the survey began in August 2009, but staffing levels dropped only slightly,” Tim Moore, economics director at IHS Markit, pointed out.

Sharp drops in business activity, new orders, and stocks of purchases dragged down the Saudi PMI in March.

"The latest survey data were collected between 12-23 March and therefore signal a steep economic downturn even before the tightening of workplace and travel restrictions to contain the COVID-19 pandemic,” Moore noted.

Despite company shutdowns, staffing numbers declined slightly in March.

Meanwile, demand for essential goods and services, especially from the pharmaceuticals and healthcare sectors, increased.

The steep declines in business activity and new work dimmed the business outlook for the coming 12 months.

Despite hopes for recovery of business activity following the measures taken to contain the crisis, there are concerns that the global economic slowdown would weigh on business operations in the long term.