Saudi Non-Oil PMI Hits 4-Month High in June 2026

Saudi Arabia's non-oil private sector recorded its strongest performance in four months during June 2026, as the Purchasing Managers' Index (PMI) climbed to 53.3, up from 52.8 in May. Any reading above 50 signals expansion, confirming continued growth in activity across the Kingdom's non-oil economy.

The improvement was driven by stronger domestic new business and fresh project approvals, with new order volumes rising at their fastest pace since February 2026. Output growth held broadly steady, as around 18% of surveyed firms reported higher activity and only 2% recorded declines.

Despite the momentum, export orders fell sharply for the fourth month in a row, hit by logistical bottlenecks, higher costs, and stronger foreign competition. On the pricing side, input costs recorded their steepest quarterly rise in 15 years during the second quarter of 2026, leading businesses to raise their own prices at one of the fastest rates in nearly six years.

Why it matters

Non-oil activity remains the main engine of the Kingdom's economy. In the first quarter of 2026, non-oil sectors added 1.7 percentage points to real GDP growth of 3% year-on-year. Finance, insurance, and business services expanded 5.4%, while manufacturing excluding oil refining grew 4%.

Domestic demand continues to support this expansion, with government final consumption up 11.3% and private consumption rising 5.3% year-on-year. While crude oil and natural gas activities grew 3.6%, overall real GDP slipped 1.2% quarter-on-quarter due to a 6.8% drop in oil activities — underlining the growing resilience of the non-oil private sector for residents, workers, and businesses across Riyadh, Jeddah, and beyond.

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