Riyad Bank’s Saudi Arabia PMI slipped slightly to 53.1 in July 2026 from 53.3 in June, yet still signaled a fourth consecutive month of expansion in the non-oil private sector. Business activity remained robust, underpinned by stronger domestic demand as market conditions continued to normalize after recent regional disruptions.
That said, growth in new orders slowed compared with June, and export sales declined for a fifth consecutive month, weighed down by high freight costs and intensified competition—though the rate of contraction eased. Employment rose modestly, while backlogs of work fell at the fastest pace since April 2025. Supply chain performance improved further, with supplier delivery times shortening for a third straight month.
On the price front, input cost inflation eased to a four-month low, although it remained elevated, and output price inflation also moderated slightly. Looking ahead, business confidence weakened from June’s five-month high, as ongoing regional tensions and stronger competitive pressures tempered firms’ expansion plans.
