Saudi private sector growth is stable in April and employment is moderate, according to the PMI

DUBAI (Reuters) – Non-oil private sector growth in Saudi Arabia remained strong, although it remained unchanged in April, but strong demand and increased business confidence did not translate into creation. jobs, revealed a monthly survey of companies.

The seasonally adjusted seasonally adjusted Saudi Arabia purchasing managers index, Saudi Arabia, remained unchanged at 56.8 in April. A value greater than 50 indicates an expansion and less than this contraction.

The Saudi private sector experienced difficulties last year due to the rise in the price of gasoline, the introduction of a 5% value – added tax and the cost of gasoline. 39, increased recruitment fees for foreign workers.

But private sector growth has accelerated this year. It reached its highest level in 13 months in January and continued to gain ground – albeit marginally – in February and March.

"The overall PMI remained unchanged at 56.8 last month. Growth in output and new orders remained strong, but private sector employment has not seen significant growth in the past three months, "said Khatija Haque, Research Manager. in the MENA region at Emirates NBD.

The production subindex reached 61.2, the highest level since December 2017, while new orders growth remained strong at 63.5, but two points lower than March levels.

The increase in production in April was supported by stronger underlying demand and an badociated increase in new business. About 26% of the companies surveyed recorded an increase in the output of their units, against only 3% who experienced a contraction, according to the survey.

But the kingdom's non-oil labor market was moderate, with the majority of firms having no workforce change. Still, the employment sub-index edged up to 50.1 after a contraction in March.