Saudi Non-Oil Private Sector Growth Continues in August

Riyad Bank Saudi Arabia’s PMI edged up to 56.4 in August 2025 from 56.3 in July, signaling another month of steady growth. Output increased slightly, along with new order volumes, partly driven by a renewed rise in export sales. Employment continued to expand, extending the trend of robust staffing gains seen for much of this year. Non-oil companies also ramped up their purchasing activity, pushing inventories to their highest level in four months. Average lead times improved, though at a moderate pace compared to May’s recent high. On the cost side, input prices remained elevated amid persistent pressures from materials, transport, and technology-related expenses. As a result, firms raised their selling prices for the third straight month. Looking ahead, business sentiment improved, with firms citing rising demand, ongoing projects, and supportive government policies as reasons for optimism.