Growth in Saudi Arabia's non-oil private sector slowed slightly in February, a survey showed on Tuesday, although demand remained strong.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) slipped to a reading of 56.1 in February from January's 56.3, but remained well above the 50.0 threshold that separates growth from contraction.
"This performance was driven by robust domestic demand and a steady flow of new project approvals," said Naif Al-Ghaith, Riyad Bank's chief economist.
In February's PMI survey, the new orders sub-index remained steady at 61.8, similar to the previous month, indicating strong demand with businesses continuing to report strong output growth and a sharp rise in employment.
The rate of employment growth accelerated to a four-month high, driven by increased sales and a build-up of backlogs, according to the survey. However, the rate of staff cost inflation hit its highest since the survey began in August 2009.
