Monday 6 May 2024
 
»
 
»
UAE PICKS UP

Saudi Arabia's non-oil private sector ... faces three-month low

Saudi non-oil business growth slows

RIYADH, May 5, 2015

Growth in Saudi Arabia's non-oil private sector slowed to a three-month low in April as the effects of a one-off injection of government cash into the economy faded, a survey of businesses showed on Tuesday.

However, business activity growth in the UAE's non-oil private sector accelerated slightly in April, the survey said.

In Saudi Arabia, King Salman marked his accession to the throne in January by ordering the immediate payment of two months of bonus salary to all state employees and pension to retired government workers.

This triggered a mini-consumption boom but that had lost steam by April, when the seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers' Index dropped to 58.3 points from 60.1 in March.

Output growth slowed sharply to 64.2 points from 67.6, though it remained fast in absolute terms, while new order growth fell less steeply to 65.9 from 67.3. Employment continued to increase but at a slower pace.

Input price inflation slowed slightly in April but remained well above output price inflation, which dropped into negative territory for the first time in 11 months.

The seasonally adjusted HSBC UAE Purchasing Managers' Index, which covers manufacturing and services, edged up to 56.8 points last month from 56.3 in March, which was a 17-month low. The 50-point level separates growth from contraction in the survey of 400 firms.

"The UAE's non-oil private economy began the second quarter of 2015 on a positive note, with business conditions improving at a faster pace in April," said Philip Leake, economist at data compiler Markit.

Output, new orders and employment all rose more quickly during the month, with the output index climbing to 62.0 points from 60.7, and new orders edging up to 62.1 from 61.6.

Companies, however, were unable to raise the prices they charge while their input costs increased. The output price index was flat at 49.2 in April, while the input price index jumped above the 50 mark to 52.3 points from 49.3. - Reuters




Tags: economy | business | growth |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events

Ads