Saudi Non-Oil Private Sector Growth at 6-Month High

Riyad Bank Saudi Arabia’s PMI rose to 53.8 in August 2026 from 53.1 in July, marking the highest reading in six months and a fifth consecutive month of expansion in the non-oil private sector. Output expanded at the fastest pace in seven months, while new orders also increased for a fifth straight month, although intense competition and excess supply weighed on some firms. Export orders fell sharply and at a faster pace than in July amid continued regional tensions. Employment increased for a second consecutive month, while backlogs declined for a third month, pointing to spare capacity. Supply conditions improved further, encouraging firms to raise input purchases at the fastest pace since February. Inflationary pressures remained elevated, with material, transportation and staff costs rising, although output price inflation eased to its slowest since March. Lastly, business confidence rebounded to a seven-month high.

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.

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.