FX.co ★ Saudi Non-Oil Private Sector Growth Edges Up

In May 2025, Riyad Bank Saudi Arabia's Purchasing Managers' Index (PMI) increased slightly to 55.8, up from an eight-month low of 55.6 in April, firmly staying above the neutral mark of 50 and indicating sustained expansion in the non-oil private sector. The rise in new orders was significant during this period, fueled by increasing demand, robust sales performance, ongoing industrial advancements, and successful marketing strategies. In response, companies enhanced their hiring efforts at one of the quickest paces observed in over ten years, highlighting a strong desire to expand their workforce. Concurrently, purchasing activity experienced vigorous growth, reaching a peak not seen in fourteen months. On the financial side, input costs rose significantly in May; however, inflation rates moderated compared to April, due to reduced wage pressures. Despite these increased input costs, companies lowered their selling prices, influenced by competitive forces and a significant reduction in service sector fees.