Riyadh – Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia jumped to 57.2 during June 2025 from 55.8 last May, according to Riyad Bank’s latest data.

The index, which was higher than the long-run average of 56.9, reflected a stronger improvement in the health of the non-oil private sector economy.

Non-oil firms recorded a hike in new orders during June, with the rate of growth continuing to accelerate from its recent low in April.

The companies gained new clients, leveraging enhanced marketing and improved demand conditions.

Domestic sales were the main driver of this upturn, while sales to foreign clients increased only slightly.

The higher demands led to a further expansion of output at the end of the second quarter (Q2) of 2025. However, the pace of activity growth eased slightly to a ten-month low.

Meanwhile, the rate of purchasing growth was the fastest recorded in two years, as businesses sought greater inputs to fulfil new orders.

Naif Al Ghaith, Chief Economist at Riyad Bank, commented: “Firms largely linked the pickup in activity to improving sales, new project starts, and better demand conditions, although the pace of output growth was softer compared to previous highs.”

“Purchasing activity accelerated to a two-year high as firms responded to rising input needs, with nearly 40% of respondents increasing their purchases,” Al Ghaith highlighted.

He added: “Hiring also surged sharply, recording the fastest rate of job creation since May 2011, as companies actively expanded their frontline and skilled teams to meet higher workloads.”

“On the future outlook, sentiment among non-oil businesses remains highly positive. Confidence about future activity climbed to a two-year peak, supported by healthy order pipelines and stronger domestic economic conditions,” the economist elaborated.