Saudi Non-Oil Private Sector Growth Stays Solid in July

2026-08-04 04:23 By Joshua Ferrer 1 min. read

Riyad Bank Saudi Arabia's PMI edged down to 53.1 in July 2026 from 53.3 in June, but still marked a fourth consecutive month of expansion in the non-oil private sector.

Business activity remained strong, supported by improving domestic demand as market conditions normalized following regional disruptions.

However, new order growth moderated from June, while export sales declined for the fifth straight month due to elevated freight costs and competitive pressures, although the pace of contraction eased.

Employment increased modestly, while backlogs of work fell at the fastest pace since April 2025.

Supply chain conditions also improved further, with delivery times shortening for a third consecutive month.

On prices, input cost inflation eased to a four-month low despite remaining elevated, while output price inflation also softened slightly.

Looking ahead, business confidence softened from June's five-month high as regional tensions and stronger competition weighed on expansion plans.



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Saudi Non-Oil Private Sector Growth Stays Solid in July
Riyad Bank Saudi Arabia's PMI edged down to 53.1 in July 2026 from 53.3 in June, but still marked a fourth consecutive month of expansion in the non-oil private sector. Business activity remained strong, supported by improving domestic demand as market conditions normalized following regional disruptions. However, new order growth moderated from June, while export sales declined for the fifth straight month due to elevated freight costs and competitive pressures, although the pace of contraction eased. Employment increased modestly, while backlogs of work fell at the fastest pace since April 2025. Supply chain conditions also improved further, with delivery times shortening for a third consecutive month. On prices, input cost inflation eased to a four-month low despite remaining elevated, while output price inflation also softened slightly. Looking ahead, business confidence softened from June's five-month high as regional tensions and stronger competition weighed on expansion plans.
2026-08-04
Saudi Non-Oil Private Sector Growth Hits 4-Month High
Riyad Bank Saudi Arabia's PMI rose to 53.3 in June 2026 from 52.8 in May, marking the third consecutive month of expansion in the non-oil private sector. It also recorded the strongest growth since February, supported by a sharp rise in output, while new business grew at the fastest pace in four months, driven by domestic demand. However, foreign sales contracted steeply for the fourth consecutive month, amid supply chain disruptions and intensified foreign competition. Meanwhile, employment was broadly unchanged, while purchasing activity and inventory accumulation increased modestly. Backlogs of work declined for the first time in a year. On prices, input cost inflation accelerated steeply, boosted by higher fuel costs, freight charges, and supplier price increases linked to the Middle East conflict. Selling prices increased at the second-fastest pace in nearly six years, amid higher purchasing and staffing costs. Looking ahead, business sentiment improved to a five-month high.
2026-07-05
Saudi Non-Oil Private Sector Growth Continues in May
Riyad Bank Saudi Arabia's PMI rose to 52.8 in May 2026 from 51.5 in April, signaling a stronger improvement in non-oil private sector conditions. Output expanded at the fastest pace in three months, supported by stronger domestic demand, resumed projects, and normalized operations following earlier disruptions. However, new order growth remained modest, while export orders contracted sharply for a third consecutive month amid shipping disruptions, higher freight and fuel costs, and geopolitical tensions. Supply chain conditions improved, with delivery times shortening for the first time since February, while purchasing activity returned to growth. Employment also expanded modestly as firms worked through rising backlogs. Meanwhile, cost pressures remained elevated despite easing from April’s record high, prompting another sharp increase in selling prices. Business confidence remained subdued amid ongoing regional uncertainty.
2026-06-03