Saudi Arabia's Operating Revenue Index (ORI) increased by 10.6 percent in April compared to the same month last year, according to the latest data from the General Authority for Statistics (GASTAT). The growth was broad-based across key economic activities, signaling continued momentum in the Kingdom's non-oil economy as it advances its Vision 2030 diversification agenda.
Manufacturing and Mining Lead Annual Gains
Manufacturing activities grew 10.3 percent year on year in April, while mining and quarrying activities surged 22.5 percent. Financial and insurance activities posted strong growth of 14.2 percent, followed by wholesale and retail trade, including motor vehicle repair, at 6.9 percent, and construction activities at 5.4 percent.
Other notable annual gains included transportation and storage activities at 16.4 percent, accommodation and food service activities at 7.6 percent, and information and communication activities at 7.8 percent. Administrative and support service activities rose by 7.8 percent, while arts, entertainment and recreation activities increased by 12 percent.
Smaller increases were observed in electricity, gas, steam and air conditioning supply at 1 percent, water supply and sewerage activities at 2.7 percent, real estate activities at 0.8 percent, professional, scientific and technical activities at 1.1 percent, education at 0.6 percent, and human health and social work activities at 1.1 percent.
Monthly Decline in ORI
On a monthly basis, the ORI decreased by 3.8 percent in April. GASTAT attributed this decline to a 19.1 percent decrease in manufacturing and mining and quarrying activities, a 1.5 percent decline in wholesale and retail trade and repair of motor vehicles, a 2.5 percent decline in financial and insurance activities, and decreases of 1.5 percent and 4.9 percent in information and communication activities and transportation and storage activities, respectively.
Business Confidence and PMI Remain Strong
A recent GASTAT report also highlighted that Saudi Arabia's Business Confidence Index (BCI) climbed to 54.5 points in April, up from 52.1 points in March, indicating sustained optimism in the non-oil sectors. The BCI stood at 60.6 in February and 61.6 in January before the March dip, which was attributed to regional geopolitical uncertainty.
In May, Saudi Arabia's non-oil private sector showed renewed momentum as the Purchasing Managers' Index (PMI) climbed to 52.8 from 51.5 in April, remaining above the 50-point threshold that separates expansion from contraction.
Employees Compensation Index Rises 10.1%
The Employees Compensation Index (ECI) demonstrated solid annual growth, rising by 10.1 percent in April compared with the same month of the previous year. This increase was driven by manufacturing activities at 12.1 percent, construction activities at 8 percent, and wholesale and retail trade as well as motor vehicle and motorcycle repair activities at 9.3 percent.
Mining and quarrying activities rose by 1.8 percent year on year in April, while financial and insurance activities expanded by 12.5 percent. Additional annual increases included electricity, gas, steam and air conditioning supply at 5.3 percent, water supply and sewerage activities at 5.1 percent, and transportation and storage activities at 16.1 percent.
On a monthly basis, the ECI edged up by 0.1 percent, supported by gains in manufacturing at 0.8 percent, construction at 0.1 percent, financial and insurance activities at 0.5 percent, and transportation and storage activities and human health and social work activities at 0.1 percent each.
Building Permits Surge 28.2% Year-on-Year
In the construction sector, the number of issued building permits rose significantly in April. According to GASTAT, 7,356 building permits were issued, representing a 28.2 percent increase compared with the same month of the previous year. Compared with March, the number of issued building permits rose 42.5 percent.
The Short-Term Business Statistics product is one of the economic statistical products aimed at measuring the performance of various activities in the economy in the short term through monthly indicators that monitor developments and growth rates for each activity, according to GASTAT. The product covers all economic activities of establishments operating in the business sector.
