The non-oil private sector in Saudi Arabia continued to achieve strong growth during February, driven by increased sales and higher activity levels, despite a slight slowdown in growth compared to the previous month, according to an economic survey released on Tuesday.

The survey showed that the seasonally adjusted Riyad Bank Purchasing Managers' Index (PMI) decreased to 58.4 in February, compared to the record level of 60.5 in January. However, it remains well above the 50 mark, indicating continued strong growth in the sector.

The slight slowdown in performance was attributed to a decline in new business growth, with the New Orders Index falling to 65.4 in February, compared to 71.1 in January. Nevertheless, new sales maintained their momentum thanks to increased marketing efforts and tourism, which boosted demand.

According to Naif Al-Ghaith, Chief Economist at Riyad Bank, businesses remain confident in future demand, as reflected in higher employment rates. Companies expanded their workforce to cope with the increasing workload and growth expectations.

Employment levels saw their fastest growth rate in 16 months, primarily driven by hiring activity in the manufacturing and services sectors, reflecting the readiness for continued expansion.

Despite the ongoing rise in input costs due to higher material and wage prices, the pace of inflation slightly eased, as companies reported that the rise in selling prices remained limited due to strong market competition.

Business confidence reached its highest level in 15 months, with companies expressing optimism about the future of economic growth, supported by stimulating government initiatives, reflecting the continued positive momentum in the non-oil private sector in the Kingdom.