#Saudi non-oil private sector contracts again, output hits new low: PMI - Reuters

Saudi non-oil private sector contracts again, output hits new low: PMI - Reuters:

Saudi Arabia’s non-oil private sector shrank for the second consecutive month in April and its output hit a record low as lockdowns and business closures to tackle the new coronavirus hammered the economy, a survey showed on Tuesday.

The seasonally adjusted IHS Markit Saudi Arabia Purchasing Managers’ Index (PMI) rose slightly to 44.4 in April from 42.4 in March, which was the lowest reading since the survey began in August 2009. 

April is only the second time the headline index has fallen below the 50.0 mark that separates growth from contraction. The slight rise from March reflected “a slower reduction in new work and a stronger contribution from the suppliers’ delivery times component,” the survey compilers wrote in a report.

“Saudi Arabian private sector output fell at the fastest pace since the survey began more than a decade ago, reflecting widespread business closures and a sharp reduction in customer demand,” said Tim Moore, economics director at IHS Markit.