Growth in Saudi Arabia’s nonoil business activity accelerated in April, according to a monthly report issued by the Saudi British Bank (SABB) and HSBC.

SABB has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers’ Index for April 2014. It reflects the economic performance of Saudi Arabian nonoil producing private sector companies through monitoring a number of variables, including output, orders, prices, stocks and employment.

April data signaled a further solid improvement in operating conditions at Saudi Arabia’s nonoil producing private sector companies, with the seasonally adjusted headline PMI posting 58.5.

Despite rising from March’s five-month low of 57.0, the latest rate of expansion was below the long-rung series average.

Improving economic conditions remained one of the main factors behind the latest solid expansions in output and new orders, according to survey participants.

Activity rose at a slightly sharper rate than in March, while the increase in new orders was the quickest since the beginning of the year. New export business also rose in April, but the rate of growth was down from March’s joint-series high.

A renewed rise in work force numbers was reported by Saudi Arabia’s nonoil private sector firms, following a month of fractional job shedding.

Increased business requirements was the main reason for the rise in staffing levels, according to survey respondents. Meanwhile, backlogs of work rose for a 15th straight month, as new order growth imparted further pressure on operating capacity.

Overall input prices increased further in April, but the rate of cost inflation eased to the weakest since mid- 2010.

While general inflationary pressures and increased raw material costs accounted for much of the latest rise in purchase prices, average staff costs rose only fractionally, with the vast majority of panel respondents signaling no change.

In response to higher input costs, Saudi Arabia’s non-oil private sector firms raised their selling prices in April. Charge inflation accelerated to the sharpest in nearly one-and-a-half years.

As has been the case throughout the 57-month survey history, suppliers’ delivery times shortened further in April. The latest improvement in vendor performance was, however, the weakest since February.

With output and new orders rising, Saudi Arabia’s non oil private sector companies increased their purchasing activity in April.

The latest expansion was the sharpest since November last year, with around 30 percent of the survey panel reporting higher buying activity.

The latest survey data meanwhile signaled a further rise in stocks of raw materials and other pre-production inventories.

The latest increase in input stocks was sharper than in March, but remained below the long-run series average.