RIYADH: Growth in Saudi Arabia’s non-oil private sector slowed in March, a survey of businesses showed on Tuesday, reaching its lowest level since the survey was launched in August 2009.
The data suggests the Saudi economy continues to struggle with the impact of low oil prices and government austerity measures such as the imposition of a 5 percent value-added tax, despite plans by Riyadh to boost state spending this year.
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The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index fell to 52.8 last month from 53.2 in February. A level above 50 means business is expanding.
The fall in the pace of expansion in Saudi Arabia’s non-oil private sector to its lowest levels on record last month will prompt firms to continue price discounting in a bid to galvanise demand,” said Daniel Richards, regional economist at Emirates NBD.
But he added, “Despite the sluggish growth at present, business optimism at 71.0 remains far above the 12-month average of 61.4.”
Output prices fell outright for a second straight month in March with a reading of 49.9, while input price inflation slowed sharply to 50.7.
