Dubai: Growth in Saudi Arabia’s non-oil private sector stalled in April, with business conditions improving at their slowest pace in three months, according to the latest purchasing managers index (PMI) data.

While the private sector output continued to rise, the rate of job creation eased to near-stagnation.

New business increased at its weakest pace in the survey’s history, weighed down by a first drop in exports since data collection started in 2009.

On the price front, charges nearly stabilised as rises stemming from higher input costs offset cuts generated by increased competition.

The survey, sponsored by Emirates NBD and produced by Markit, contains original data collected from a monthly survey of business conditions in the Saudi private sector.

“Saudi Arabia’s PMI has been broadly stable around 54 since the start of this year, signalling steady growth in the non-oil private sector,” said Khatija Haque, Head of MENA Research at Emirates NBD. “Both new orders and output continue to rise at a robust rate, despite weaker external demand. Firms were more cautious with hiring in April, with jobs growth at a four-month low.”

Egypt’s non-oil private sector continued on a downward path in April, as business conditions worsened for the seventh consecutive month.

Output, new business and employment all fell sharply. But the respective rates of contraction eased since March.

Meanwhile, the depreciation of the currency against the US dollar remained a key issue in April. It was reportedly behind an unprecedented rise in input costs, which led in turn to a survey-record increase in charges. With purchased items becoming less affordable, input buying dropped and pre-production inventories fell to the greatest extent in the series history.

“Egypt’s private sector continues to struggle amidst the FX shortage. Although further EGP weakness will eventually help lay the foundations for an economic recovery, in the short term uncertainty over the exchange rate could see additional declines in output, and a further rise in inflationary pressures,” said Jean-Paul Pigat, senior economist at Emirates NBD.