Saudi PMI falls to 56.3 points in January 2026

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The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly S&P Global Saudi Arabia PMI, dropped to 56.3 points in January 2026, marking its lowest level in six months. 

The report showed that operating conditions across the non-oil private sector improved strongly, though slightly below the long-term average of 56.9 points. The sector’s performance at the start of the year was supported by stronger market demand, higher employment levels, and increased purchasing activity.

New orders continued to rise, with surveyed companies citing positive domestic conditions and increased customer activity. This supported further growth in both employment and purchasing levels, although cost pressures accelerated due to higher input prices and rising wages.

Business activity expanded at a robust pace in early 2026, as companies reported higher output in response to improved market demand, new projects, and increased customer activity. Around 23% of surveyed firms indicated output growth in January, while 2% reported contraction.

New orders recorded notable overall growth, driven largely by favorable domestic market conditions. Export sales also strengthened, outperforming levels seen at the end of last year. While some firms noted that foreign competition limited their ability to attract international customers, others reported rising demand, particularly from GCC countries and Asian markets.

*Change on a monthly basis.

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