Saudi Non-Oil Private Sector Growth Hits 6-Month High

Riyad Bank Saudi Arabia's PMI rose to 57.8 in September 2025 from 56.4 in August, marking the fastest expansion in the non-oil private sector since March. The latest reading was supported by improved business activity growth, as non-oil companies increased output to the greatest extent since February. In response, purchasing activity accelerated to a three-month high, which subsequently led to the strongest expansion in inventory levels since April. Meanwhile, employment increased sharply, boosted by higher demand, while backlogs of work remained stable, after rising in the previous two months. On prices, input cost inflation remained stronger than the series average, driven by rising wage pressures and higher supplier costs. However, output cost infation eased to a four-month low amid strong competition. Looking ahead, business sentiment improved amid hopes of higher demand, increased sales enquiries, successful marketing efforts, and new client acquisitions.