Saudi PMI hits 4-months high at 53.3 pts in June

The PMI reading pointed to a further improvement in operating conditions at the end of Q2 2026.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, rose to 53.3 points in June, marking its highest level in four months.

Saudi Arabia's non-oil private sector continued to expand in June, with output rising sharply alongside stronger growth in new business. Activity was supported by a recovery in domestic demand, although firms continued to face challenges in export markets and mounting inflationary pressures.

The reading pointed to a further improvement in operating conditions at the end of Q2 2026, although the pace remained below the index long-run average.

Non-oil private sector activity increased in June at a pace broadly consistent with May. Around 18% of surveyed firms reported higher output, compared with only 2% reporting a decline. Growth was attributed to project approvals, stronger customer demand, and the resumption of sales activity following earlier postponements.

The report also showed stronger momentum in new business across the non-oil economy in June, with the rate of expansion accelerating to its fastest pace since February. Companies frequently cited renewed investor confidence, improved domestic consumer spending, and stronger sentiment following an easing in concerns over the regional conflict.

However, the improvement in overall sales contrasted with export performance, as new orders from overseas clients fell sharply for the fourth consecutive month. The report attributed the weakness in international sales to ongoing regional logistics disruptions and intensifying foreign competition.

The survey also indicated a marked improvement in business confidence among non-oil firms, with the future output index rising to its highest level since January.

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