Saudi Arabia Non-Oil Private Sector Growth Slows in October

2026-11-03 04:28 By Joshua Ferrer 1 min. read

Riyad Bank’s Saudi Arabia PMI eased to 54.0 in October 2026 from 55.3 in September, but remained at its second-highest level since February, marking the seventh consecutive month of expansion in the non-oil private sector.

Output growth accelerated on stronger domestic demand and sales efforts, while new orders continued to rise at a slower pace.

However, export sales fell for the eighth consecutive month amid shipping disruptions and higher freight and insurance costs.

Businesses continued hiring for the fourth straight month, although job creation slowed.

Purchasing activity also remained robust as firms built inventories to cushion supply disruptions.

Meanwhile, input cost inflation climbed to its highest level since June, driven by higher freight, insurance, raw material, energy and staff costs.

In contrast, stronger competition and discounting eased selling price inflation to a nine-month low.

Business confidence remained subdued amid geopolitical uncertainty and rising costs.



News Stream
Saudi Arabia Non-Oil Private Sector Growth Slows in October
Riyad Bank’s Saudi Arabia PMI eased to 54.0 in October 2026 from 55.3 in September, but remained at its second-highest level since February, marking the seventh consecutive month of expansion in the non-oil private sector. Output growth accelerated on stronger domestic demand and sales efforts, while new orders continued to rise at a slower pace. However, export sales fell for the eighth consecutive month amid shipping disruptions and higher freight and insurance costs. Businesses continued hiring for the fourth straight month, although job creation slowed. Purchasing activity also remained robust as firms built inventories to cushion supply disruptions. Meanwhile, input cost inflation climbed to its highest level since June, driven by higher freight, insurance, raw material, energy and staff costs. In contrast, stronger competition and discounting eased selling price inflation to a nine-month low. Business confidence remained subdued amid geopolitical uncertainty and rising costs.
2026-11-03
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.
2026-10-05
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.
2026-09-03