Saudi Non-Oil Private Sector Growth Hits Seven-Month High

Saudi Arabia’s non-oil private sector expanded at its fastest pace in seven months in September, according to Riyad Bank’s Purchasing Managers’ Index. The headline PMI rose to 55.3 from 53.8 in August, marking a sixth consecutive month of improving business conditions and the strongest reading since February.

The acceleration was driven primarily by a sharp increase in new orders, with demand recovering towards its longer-term pace. Employment and purchasing activity also expanded more quickly during the month, although output growth slowed compared with August.

Riyad Bank said the rise in new business was strong enough to offset the softer increase in output, pointing to improved demand conditions across the non-oil economy. A PMI reading above 50 indicates expansion, while a figure below 50 signals contraction.