Saudi Non-Oil Private Sector Growth at 3-Month High

Riyad Bank Saudi Arabia’s PMI rose to a three-month high of 57.2 in June 2025, up from 55.8 in May, signaling a robust improvement in non-oil private sector conditions. The uptick was driven by strong domestic demand, new project starts, and enhanced marketing efforts. New orders registered the fastest growth in four months, and firms expanded hiring at the sharpest pace since May 2011 in response to rising workloads. Purchasing activity also surged, reaching a two-year high, as companies built inventories to meet future demand. On the cost side, wage pressures intensified, leading to a record rise in staff costs and contributing to a renewed increase in overall input prices. Selling prices rose accordingly—the most since late 2023—as firms regained pricing power and sought to pass on higher costs. Despite these pressures, business confidence climbed to its highest level in two years, reflecting optimistic expectations for continued demand and economic resilience.