The non-oil private sector in Saudi Arabia witnessed significant growth at the end of last year 2020, driven by a significant increase in production and the fastest increase in new business, over the past 12 months. Despite this, companies have been cautious about hiring new employees due to reports of a surplus. In terms of absorptive capacity, and that spending is directed to purchases and production requirements.
The index rose during the year to its highest reading in 13 months, according to the PMI report issued by the Center for Communication and Financial Knowledge «Complementary», and the rise was driven by the remarkable increases in both production and new orders, as new orders witnessed a significant increase, and it is worth noting That recent data indicated the fastest recovery in new trade business during this year, which was attributed by the committee members to improved market demand and price cuts from some companies. The sales growth was largely supported by domestic demands, as the demand for exports increased only by a degree. Simple, and as a result, companies have raised their production levels at the fastest pace since November 2019.
The companies indicated that the ongoing projects led to an increase in the workload during this month, and at the same time the companies’ expectations for the next year improved further. As optimism has been strengthened for the presence of appropriate vaccines for the Coronavirus Covid-19 globally, with great aspirations that this will lead to a strong recovery in economic activity, and the degree of this optimism has risen to its highest level during the year 2020; With the increase in sales and the improvement of the companies ’optimism, the companies increased their activity from purchases, and increased the stock of their products significantly in the month of December, however the arrival of some products was delayed, with the extension of the delivery dates of suppliers for the eleventh month in a row, and there was a delay in delivery with difficulties in payment to suppliers. And despite the huge increase in demand, the companies were able to complete the backlog in December; Production has increased substantially, and at a greater rate, since July, and companies reported that they are still holding capacity after the contraction they experienced earlier in the year.
(Kingdom in PMI 2020)
Significant growth in the non-oil private sector
Significant increase in production
The fastest increase in new business
Increase in corporate production levels
An increase in the inventory of products
An increase in the average prices of products and services compared to last November
Input prices were unchanged in December
Compensation for increases due to costs associated with protocols
Corona through discounts offered by some companies
The inflation streak lasted 5 months