Saudi Arabia topped the G20 countries in the performance of the purchasing managers’ index for the non-oil private sector, for the month of January of this year.
The index recorded 58.2 points in successive growth since September 2020, reflecting the strength and durability of the Kingdom’s economy despite the instability in global markets, according to the Saudi Press Agency.
The results of the index showed an improvement in the level of commercial activity, and an increase in demand for goods and services within the non-oil private sector, amid expectations of officials in the sector to continue strong growth despite geopolitical developments, climate changes and increasing international uncertainties, according to SPA.
The rise in the index came with the performance of the private sector’s production, which kept pace with the strong domestic demand for goods and services, driven by the improvement in the most important items of the index represented in production, new orders and export orders in addition to purchases stocks, as well as an increase in customer orders.
According to the Saudi Press Agency, the rise in the purchasing managers’ index in the Kingdom reflects confidence and optimism among investors and company owners, as companies began to provide more positive and optimistic expectations for the market.
The index rose from 56.9 points in December 2022 to 58.2 points in January 2023, a clear increase from the neutral level of 50 points, which is the boundary between growth and contraction, and the index result is the second highest level recorded since September 2021.
New orders also recorded a remarkable increase, reaching 65.3 points, representing the second largest rate of increase in 16 months, which boosted the growth of non-oil activity, as this rise contributed to increasing the optimistic outlook of business owners and investors and the continuation of their expansion plans in conjunction with the improvement of market conditions.
The PMI in the non-oil private sector is based on questionnaires sent to purchasing managers in a body that includes about 400 private sector companies operating in various activities, including manufacturing, construction, wholesale and retail trade, and services.
This article was originally published by RT.
