Saudi Non-Oil Private Sector Contracts The Most in 6 Years

2026-04-05 04:49 By Farida Husna 1 min. read

Riyad Bank Saudi Arabia’s PMI plunged to 48.8 in March 2026 from 56.1 in the prior month, signaling the first drop in the non-oil private sector in near six years and the steepest downturn since a record low in March 2020.

The decline stemmed from Middle East war disruptions that strained supply chains and delayed client spending.

New orders stalled, export demand shrank the most in six years, and output growth eased.

Buying levels slowed, though inventories rose, reflecting limited stockpile reduction.

Employment rose but at a weaker pace, while delivery times lengthened the most since June 2020 amid shipping delays and higher fuel costs.

Supply constraints lifted backlogs to their highest since July 2018.

On inflation, input cost rose the least in a year on softer wage pressures, though fuel and freight costs raised purchasing and selling prices.

Sentiment dipped to its lowest since June 2020, as war concerns overshadowed support from government spending.



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Saudi Non-Oil Private Sector Contracts The Most in 6 Years
Riyad Bank Saudi Arabia’s PMI plunged to 48.8 in March 2026 from 56.1 in the prior month, signaling the first drop in the non-oil private sector in near six years and the steepest downturn since a record low in March 2020. The decline stemmed from Middle East war disruptions that strained supply chains and delayed client spending. New orders stalled, export demand shrank the most in six years, and output growth eased. Buying levels slowed, though inventories rose, reflecting limited stockpile reduction. Employment rose but at a weaker pace, while delivery times lengthened the most since June 2020 amid shipping delays and higher fuel costs. Supply constraints lifted backlogs to their highest since July 2018. On inflation, input cost rose the least in a year on softer wage pressures, though fuel and freight costs raised purchasing and selling prices. Sentiment dipped to its lowest since June 2020, as war concerns overshadowed support from government spending.
2026-04-05
Saudi Non-Oil Private Sector Growth Eases in February
Riyad Bank Saudi Arabia’s PMI edged down to 56.1 in February 2026 from 56.3 in January, signaling the softest improvement in non-oil business conditions in nine months. Output growth remained robust but lost pace, hitting a six-month low as competitive pressures and moderating international orders weighed on expansion. Meanwhile, the labour market showed notable strength. Staff numbers rose sharply, fueling a survey-record increase in wages as firms competed to retain and attract talent. Selling prices also accelerated, recording the joint-fastest uplift since May 2023. Sub-indices for domestic sales and new orders continued to rise strongly, supported by elevated customer demand, digital initiatives, and collaborative client projects. Order books expanded broadly, highlighting sustained domestic activity. Looking ahead, business confidence remained positive, with firms citing new client projects, stronger demand, and improving domestic economic conditions.
2026-03-03
Saudi Non-Oil Private Sector Stays Expansionary
Riyad Bank Saudi Arabia’s PMI eased to 56.3 in January 2026 from 57.4 in December, the lowest in six months and slightly below its long-term average. Still, the reading is consistent with a robust expansion, suggesting growth momentum has cooled but operating conditions remain firmly in positive territory. Business activity continued to rise at a solid pace and new orders increased at a marked rate, reflecting resilient domestic conditions. Export demand also strengthened, as new export orders expanded at the fastest pace since October 2025. Employment growth remained strong, though the pace of hiring eased to the softest in a year after peaking last October. Cost pressures intensified for a second straight month, with higher input prices, purchase costs, and staff expenses, particularly for metals, materials, fuel, and technology. Business confidence improved from December but stayed below its long-term average, pointing to cautious optimism for 2026.
2026-02-03