Saudi PMI advances to highest level since 2014 in January

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, rose to 60.5 points in January.

The latest reading marked the highest level since 2014, reflecting a significant improvement in operating conditions by 2025-beginning, according to a report issued today, Feb. 4.

This was largely due to total new orders as their growth pace increased at the highest level since June 2011. This, in turn, prompted rapid expansion in business activity and inventory, with inventory levels rising at a historic pace.

The latest study also showed that corporates under coverage forecast the strongest 10-month activity over the next year. This is despite the widely-anticipated additional pressure on feedstock prices, which companies mainly attributed to the high prices of materials due to geopolitical tensions, while the labor market was positive as it witnessed a robust uptick in employment rates.

The report pointed out that four-out of-five subcomponents of the index had a positive impact on January’s core reading, especially the new orders index, which rose by more than five points during the month, pointing to the largest rise in new work orders in more than 13.5 years.

According to the survey, the favorable economic conditions supported a strong boost for customer orders, while some companies have benefited from new infrastructure projects. 

*Change on a monthly basis.

The PMI is a weighted average of the following five indices: