Saudi Non-Oil Private Sector at 7-Month High

Riyad Bank Saudi Arabia's PMI jumped to 55.3 in September 2026 from 53.8 in August, marking the sixth consecutive month in expansionary territory. This also marked the highest reading since February, driven by a sharp increase in new orders, which moved closer to its long-run average and signaling a recovery in demand after a softer period in mid-2026. Survey respondents cited higher client numbers and a growing volume of pending projects as key drivers of sales growth. Businesses also stepped up hiring, expanding sales and technical teams to support new investments and rising workloads. However, delivery times lengthened at the fastest pace in five months as supply chain disruptions persisted amid geopolitical uncertainty. On the cost front, input prices increased markedly, driven by higher material and transportation expenses. Firms responded by raising selling prices at a robust pace, with output charge inflation remaining among the strongest seen in more than six years.

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.