Riyad Bank’s Saudi Arabia PMI eased to 54.0 in October 2026 from 55.3 in September, but remained at its second-highest level since February, marking the seventh consecutive month of expansion in the non-oil private sector. Output growth accelerated on stronger domestic demand and sales efforts, while new orders continued to rise at a slower pace. However, export sales fell for the eighth consecutive month amid shipping disruptions and higher freight and insurance costs. Businesses continued hiring for the fourth straight month, although job creation slowed. Purchasing activity also remained robust as firms built inventories to cushion supply disruptions. Meanwhile, input cost inflation climbed to its highest level since June, driven by higher freight, insurance, raw material, energy and staff costs. In contrast, stronger competition and discounting eased selling price inflation to a nine-month low. Business confidence remained subdued amid geopolitical uncertainty and rising costs.