Saudi private sector growth falls in January

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purpsoes only)

(Photo for illustrative purpsoes only)

Growth of business activity in Saudi Arabia's non-oil private sector fell in January, a survey of more than 400 private companies has showed.

The SABB HSBC Saudi Arabia Purchasing Managers' Index, which measures activity in the manufacturing and services sectors, was 58.1 points last month compared to 58.9 points in December.

The seasonally adjusted index remains well above the 50-point mark separating growth from contraction.

It reflects the economic performance of the Saudi Arabian non-oil producing private sector companies through the monitoring of a number of variables, including output, orders, prices, stocks and employment.

The survey showed output and new orders increased solidly but input price increase picked up. Meanwhile, employment levels continued to rise.

Output rose during January but the rate of growth slowed slightly. Almost 45 percent of survey respondents indicated an increase in new orders, which was mainly driven by improved economic conditions and good sales team efforts.

New business from abroad increased in January, albeit at the slowest pace in five months.

The latest survey data signalled a decrease in work outstanding at non-oil producing firms in Saudi Arabia.

Employment levels increased further in January, and the rate of job creation was in line with the overall series average.

An increase in new orders was reported to be the main driver behind the latest rise in payroll numbers.

Output prices at non-oil producing private sector companies also rose during January, and at a slightly sharper rate than in December. The rise in output prices was linked to higher input costs and increased market demand.

Overall input prices rose during January, while the rise in purchase prices was driven by higher raw material prices and general economic pressures.

Panellists also reported higher average staff costs. This was linked to the hiring of additional employees.

January data signalled a rise in purchasing activity at Saudi Arabian firms, and the rate of growth was higher than in the previous survey period.

Almost one-in-three respondents indicated an increase in buying, while only six percent recorded a decrease.

Stocks of purchases continued to increase during January. There was some evidence that growth was driven by expectations of an increase in new orders and production over the coming months.

Related:
Companies

Market Performance

SABB
33.3
-0.36 -1.07 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
How the Gulf is moving to digital

How the Gulf is moving to digital

The Gulf’s media industry is being characterised by a switch...

Coming to America

Coming to America

As Barack Obama seeks to rebalance the bloated US economy, the...

Saudi king keeps close hand on oil in remodelling strategic team

Saudi king keeps close hand on oil in remodelling strategic team

King is clearly laying the ground for a generational shift in...

Most Discussed
  • 8
    Has Narendra Modi already lost the plot?

    Do something for your country instead of giving an overview from outside the country. This article does not have indepth view of the policies announced... more

    Thursday, 26 March 2015 2:47 PM - umas
  • 4
    Nakheel PR: The toughest job in Dubai?

    I would suspect the damage is done. Nakheel should have put its customers first and made them allies. Instead, it has treated them as second-class citizens... more

    Friday, 27 March 2015 2:42 AM - Chris
  • 3
    Drunk passenger who slapped air stewardess jailed in Dubai

    @Nezaud is 100% correct. Infact I think it is utter hypocrisy for airlines to complain about Drunken passengers when it is they (the airlines) who are... more

    Friday, 27 March 2015 2:42 AM - Robert Carter