Saudi Arabia’s non-oil private sector signaled a sharp loss of momentum in March 2026, as the Riyad Bank Composite Purchasing Managers’ Index (PMI) fell to 48.8, down from 56.1 in February 2026. The latest reading, updated on 5 April 2026, marks a move from solid expansion to contraction territory, with the index slipping below the 50.0 threshold that separates growth from decline.
The drop of more than seven points in a single month suggests a significant deterioration in business conditions across the surveyed sectors, indicating weaker output and new business activity compared with February. Coming after a period of expansion highlighted by February’s 56.1 reading, the March figure points to growing headwinds for Saudi Arabia’s private sector, with potential implications for employment, investment plans, and near-term growth expectations.
The shift into contraction territory will be closely watched by investors and policymakers alike, as they assess whether the March downturn reflects a temporary pullback or the start of a more prolonged soft patch in the Kingdom’s non-oil economic performance.
