Riyadh - Mubasher: Non-oil producing companies in Saudi Arabia continued to increase their employment rates at a high pace in March, amid increased demand, which encouraged production expansion and increased inventory of production supplies.

The Riyad Bank Purchasing Managers' Index (PMI), released on Monday, showed that strong competition in the non-oil economy led to a decline in selling prices, recording the first decline in six months. Meanwhile, the rate of inflation in input costs fell to its lowest level in more than four years.

The headline Purchasing Managers' Index (PMI) reached 58.1 points in March 2025, indicating a strong improvement in business conditions across the Kingdom's non-oil private sector.

Although the index hit a five-month low, down from 58.4 points in February, it remained slightly above the series average of 56.9 points.

The new orders sub-index fell to 63.2 in March, compared to February's reading of 65.4. Despite the slowdown in momentum, companies have been stockpiling goods, anticipating sustained sales growth.

Naif Al-Ghaith, chief economist at Riyad Bank, emphasized that the improvement in business conditions is supported by government efforts to strengthen regulatory frameworks and infrastructure investments, paving the way for more private and foreign investment.