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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, fell to 57 points in March 2024.
The non-oil private sector saw significant operational improvements at the end of the first quarter. Business activity hit a six-month high, driven by notable increases in orders and new clients.
In March, non-oil companies reported a remarkable production boost, the highest in six months, credited to robust demand.
New order volumes surged, marking the second consecutive month of acceleration. Many companies observed a threefold increase in new business, outdoing those with declines. Additionally, demand from abroad grew, marking the first steady increase since mid-2023.
Looking ahead, non-oil firms are highly positive about future business, spurred by solid demand. Their 12-month outlook is the brightest since November.
In March, non-oil entities ramped up their purchases, with a higher growth rate than in February. Responding to improved demand, firms preferred maintaining extra production supplies, leading to quicker delivery improvements and larger stockpiles.
Saudi Arabia PMI since 2022*
Month
Index (Points)
Change (Points)
Change (%)
January 2022
53.2
(0.7)
(1.3%)
February
56.2
+3.0
+5.6%
March
56.8
+0.6
+1.1%
April
55.7
(1.1)
(1.9%)
May
55.7
—
—
June
57.0
1.3+
+2.3%
July
56.3
(0.7)
(1.2%)
August
57.7
+1.4
+2.5%
September
56.6
(1.1)
(1.9%)
October
57.2
+0.6
+1.1%
November
58.5
+1.3
+2.3%
December
56.9
(1.6)
(2.7%)
January 2023
58.2
+1.3
+2.3%
February
59.8
+1.6
+2.7%
March
58.7
(1.1)
(1.8%)
April
59.6
+0.9
+1.5%
May
58.5
(1.1)
(1.8%)
June
59.6
+1.1
+1.9%
July
57.7
(1.9)
(3.2%)
August
56.6
(1.1)
(1.9%)
September
57.2
+0.6
+1.1%
October
58.4
+1.2
+2.1%
November
57.5
(0.9)
(1.5%)
December
57.5
—
—
January 2024
55.4
(2.1)
(3.7%)
February
57.2
+1.8
+3.2%
March
57.0
(0.2)
(%0.3)
*Change on a monthly basis.
The PMI is a weighted average of the following five indices:
Riyad Bank PMI Details
Subindex
Percentage
New orders
30 %
Output
25 %
Employment
20 %
Suppliers’ delivery times
15 %
Stocks of purchases
10 %
Total
100 %
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