Saudi PMI Jumps to 55.3 in September in Strongest Reading Since February

Saudi Arabia's Riyad Bank Non-Oil Purchasing Managers' Index (PMI) rose to 55.3 points in September 2026 from 53.8 points in August, achieving its sixth consecutive month of expansion and its strongest reading since last February, according to monthly survey data.

The survey attributed the index's rise to a notable increase in new orders, with participating companies pointing to a growing number of clients and a backlog of pending projects, which prompted them to expand sales and technical teams to support investment and increasing workloads.

Input costs rose due to raw material prices and freight charges, prompting companies to raise selling prices at a strong pace, keeping output price inflation near its highest levels in more than six years, while delivery times lengthened at the fastest pace in five months amid supply chain disruptions and geopolitical concerns.

The continued reading above the 50-point mark indicates that the Kingdom's non-oil private sector continues to expand despite cost pressures. This matters to readers because this sector is a key driver of jobs and investment in the Saudi economy as part of the diversification effort away from oil, and the rise in selling prices ultimately reflects on corporate and consumer costs.

What Do These Terms Mean?

Purchasing Managers' Index (PMI): A monthly index based on a survey of purchasing managers at companies, measuring output, new orders, employment, and purchase prices. A level of 50 points indicates stability; above 50 signals growth, and below signals contraction.

Non-oil sector: Economic activities outside oil and gas extraction and refining, such as manufacturing, trade, services, construction, and tourism.

Output price inflation: The rise in prices at which companies sell their products and services, which typically passes through to the final consumer if cost pressures persist.