Riyadh - Mubasher: The headline seasonally adjusted Purchasing Managers’ Index (PMI) of Saudi Arabia hit 56.4 in August 2025, up slightly from 56.3 in July, according to Riyad Bank’s latest data.

The index remained above the neutral 50 threshold, pointing to a solid improvement in the non-oil private sector, though still lower than the peak of 60.5 recorded at the beginning of the year.

Non-oil sector saw a modest output rebound after July’s low, driven by better demand and stronger sales efforts.

New order volumes increased slightly, with domestic demand linked to infrastructure projects and renewed export sales, particularly to GCC markets.

Nearly 28% of surveyed firms signaled higher orders compared to just 9% reporting a decline.

Employment grew in August, though at the slowest pace since May, as firms added sales staff, project hires, and skilled workers.

Non-oil firms boosted purchasing in August, lifting inventories to a four-month high, while supplier delivery times also improved and were well below May’s peak.

Input prices rose sharply in August, driven by higher purchasing, shipping, and technology costs, though wage growth softened.

Accordingly, selling prices increased for the third month, but at a slower pace than in July.

Naif Al Ghaith, Chief Economist at Riyad Bank, said: “Saudi Arabia’s non-oil private sector economy continued to expand at a solid pace in August, with demand conditions improving, output rebounding, and employment rising further.”

 “Employment trends remained broadly supportive, with firms continuing to expand their headcounts to meet current and expected demand. Although the rate of hiring eased from recent peaks, it remained historically strong,” Al Ghaith added.

“On the cost front, input prices remained elevated due to persistent pressures on material, transport, and technology-related expenses. Wage pressures eased slightly, but firms still faced broad cost challenges,” he concluded.