Riyadh – Sharikat Mubasher: Saudi Arabia’s non-oil private sector began 2026 on a solid footing, supported by resilient domestic demand, rising new orders, and continued expansion in business activity, according to the latest Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI).
The headline PMI eased to 56.3 in January, down from 57.4 in December, marking its lowest level in six months but remaining firmly above the 50 threshold that signals expansion. The reading indicates a robust improvement in operating conditions across the non-oil economy, albeit at a slightly slower pace than at the end of last year.
Survey data showed sustained growth in output and sales, driven by stronger client activity, newly approved projects, and improving domestic market conditions. New orders continued to rise at a marked pace, while export demand recorded its fastest expansion since October 2025, supported by increased demand from GCC and Asian markets
Employment levels also increased, reflecting firms’ efforts to support higher workloads, although the pace of hiring softened compared to recent peaks. At the same time, cost pressures intensified for the second consecutive month, with higher input prices and wage costs pushing firms to raise selling prices, though competitive conditions limited full cost pass-through.
The Riyad Bank Saudi Arabia PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 private sector companies. The PMI is a weighted average of the following five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).
