Saudi PMI falls to 55.6 points in April

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, dropped to 55.6 points in April.

Saudi Arabia’s non-oil private sector saw a strong improvement in business conditions in April, although the index fell to its lowest level since August 2024. The index decline is primarily attributed to a four-point drop in new orders, according to the latest PMI data.

Business activity among Saudi Arabia's non-oil companies rose sharply at the beginning of Q2 2025, with firms largely reporting increased production due to higher sales, new project approvals, and increased tourist arrivals.

 Although production growth was notable, it was the slowest in seven months, partly due to a slowdown in sales growth. In some cases, companies indicated that global economic uncertainty impacted customer spending, while others cited increased competitive pressures.

Non-oil private sector employment saw a strong increase in April, with employment growth accelerating to its fastest pace in 10.5 years, matching the level recorded in October 2023, as companies expanded their hiring capacity in response to higher sales and increased activity.

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