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, signaling a seventh consecutive month of expansion in the non-oil private sector. Output growth strengthened, supported by firmer domestic demand and intensified sales efforts, even as the pace of new order growth moderated.
Export sales declined for the eighth month in a row, reflecting ongoing shipping disruptions and higher freight and insurance costs. Firms continued to expand their workforce for a fourth consecutive month, though the rate of job creation slowed. Purchasing activity stayed strong as companies built up inventories to help buffer against supply chain disruptions.
Input cost inflation rose to its highest level since June, driven by increased freight, insurance, raw material, energy, and labor costs. By contrast, heightened competition and discounting pressures pushed selling price inflation down to a nine-month low. Business confidence remained muted, weighed down by geopolitical uncertainty and mounting cost pressures.
