Riyadh - Sharikat Mubasher: Saudi Arabia’s non-oil private sector recorded its highest reading since February and the sixth consecutive month of improving business conditions, with the Saudi Purchasing Managers’ Index (PMI) rising to 55.3 in September from 53.8 in August.

The latest Riyad Bank Saudi Arabia PMI report showed demand growth has recovered toward more normal levels, driven by domestic sales, as orders from foreign clients fell for the seventh month in a row.

The new orders index rose markedly in September, moving much closer to its long-run average, in a sign that demand conditions had recovered strongly after a mid-2026 slowdown. Surveyed businesses said gradually improving market conditions had brought in more clients and higher spending.

Businesses increased their hiring efforts, with the latest data pointing to solid expansion in total employment. Respondents attributed the increase to the expansion of sales teams and technical staff to support new investments. Growth in purchasing activity also gathered pace in September, with the rate of increase in input purchases accelerating sharply from August to a seven-month high.

Naif Al-Ghaith, chief economist at Riyad Bank, said: “The September results are broadly consistent with the wider picture of the Saudi economy, where domestic consumption, investment activity, government and PIF-related projects, and continued credit availability remain important supports for non-oil activity.”

The PMI is a weighted average of five indices: New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%).