Saudi Arabia’s non-oil business sector activity hit top form in eight years in February, according to a survey conducted on Sunday, based on high demand and a positive economic outlook.

Riyad Bank Saudi Arabia Purchasing Managers’ Index reached 59.8 in February, from 58.2 the previous month, the fastest rate of increase since March 2015, Reuters reported.

A substantial rise in new orders indicated improved economic conditions for businesses. The New Orders sub-index rose to 68.7 last month – the highest reading in more than eight years – from 65.3 in January, continuing a recent trend upwards on strong demand momentum.

As a result the Output sub-index also recorded a strong increase, at 65.6 in February from 63.6 in the previous month, leading to further expansion in employment and purchasing.

Riyad Bank’s Chief Economist Naif Al-Ghaith said, “Despite tighter monetary conditions, demand and supply balance seemed robust and spurred by the ongoing projects around the Kingdom, causing sharper uplifts in output and new orders for firms, as well as rising demand for labour.”

Al-Ghaith continued, “Prices have responded to the surge in demand, with the increase in input costs evident especially in the services and construction sectors.”

Source: Bahrain News Agency