Riyad Bank’s Saudi Arabia PMI rose to 53.8 in August 2026 from 53.1 in July, the highest level in six months and the fifth consecutive month of expansion in the non-oil private sector. Output grew at its fastest pace in seven months, and new orders increased for a fifth straight month, although intense competition and excess supply continued to weigh on some firms. Export orders declined sharply, at a faster rate than in July, amid ongoing regional tensions.
Employment rose for the second consecutive month, while backlogs fell for a third month, indicating spare capacity in the sector. Supply conditions improved further, prompting firms to ramp up input purchases at the quickest rate since February. Inflationary pressures remained elevated, driven by higher material, transport and labor costs, although output price inflation slowed to its weakest pace since March. Business confidence, meanwhile, rebounded to a seven-month high.
