Riyadh – Sharikat Mubasher: Saudi Arabia’s non-oil private sector economy recorded its strongest expansion in six months in September, according to the latest Riyad Bank Purchasing Managers’ Index survey compiled by S&P Global.
The headline PMI rose to 57.8, up from 56.4 in August, signaling a solid improvement in business conditions and the fastest pace of growth since March.
The survey showed a notable rise in business activity and new orders, supported by strong domestic and export demand. Firms cited effective marketing, new client acquisitions, and robust consumer spending as key growth drivers. As a result, firms increased output and purchasing activity, leading to higher inventory levels and faster supplier deliveries.
Employment also grew at a historically strong rate, with firms adding staff to manage rising workloads and expand sales operations. Despite rising input costs driven by wage pressures and supplier price increases, output price inflation softened, as companies maintained competitive pricing.
Naif Al-Ghaith, Riyad Bank Chief Economist, said the results reflect “the strongest performance since March,” driven by faster output growth and sustained demand across the non-oil economy. He noted that optimism among businesses improved, underpinned by steady demand and ongoing projects, suggesting that the private sector remains resilient heading into the final quarter of 2025.
Worth mentioning, 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%).
