Riyadh - Mubasher: The seasonally adjusted S&P Global Saudi Arabia Purchasing Managers’ Index (PMI) increased to 56.8 in March from 56.2 in February, marking the highest recorded reading since November 2021.

The index indicated a strong improvement in Saudi Arabia's non-oil private sector economy, driven by higher output and new orders, according to a press release on Tuesday.

Meanwhile, non-oil companies raised their input purchases to the fastest level since December 2017 to meet current demand and prepare stocks for future growth.

However, companies have witnessed a sharp rise in energy and material prices due to the war in Ukraine, resulting in the strongest uplifts in costs and selling charges since August 2020.

The Economist at S&P Global, David Owen, commented: "Supply chains also displayed strength, with lead times shortening to the greatest extent for three years. In turn, companies raised their purchasing at the fastest rate since December 2017, supporting higher capacity levels."

Owen added: "On the flip side, cost pressures escalated during March as commodity prices turned volatile in response to the Russia-Ukraine war. Rising petrol and raw material prices greatly added to firms' expenses sheets."