Saudi Non-Oil PMI Hits Six-Month High in August

Saudi Arabia's non-oil private sector picked up pace in August 2026, with the Purchasing Managers' Index (PMI) climbing to 53.8, up from 53.1 in July. The reading marks a six-month high and the fifth straight month of expansion in business conditions across the Kingdom.

A PMI above 50 signals growth in the non-oil private sector, while a reading of 50 indicates no change and anything below points to contraction. Although August's figure sits below the survey's long-term average of 56.8, it reflects steady momentum in business activity.

Business output reached a seven-month high during the month, while new orders rose for the fifth consecutive month. Growth was driven mainly by stronger domestic demand, which helped offset softer external conditions. Foreign and export orders declined and remained a weak spot amid regional tensions.

Why it matters

The latest data point to firmer hiring and improving market confidence, reinforcing the view of a resilient non-oil economy despite weaker demand from abroad. Stronger activity in sectors such as manufacturing, services, construction, and retail tends to translate into more jobs and business opportunities for residents and companies alike.

The index is based on a seasonally adjusted survey of around 400 non-oil private sector firms and is published monthly as new data become available. It is a statistical indicator only and does not involve any government fees, licenses, or validity periods. Earlier in 2026, the index swung between 56.1 in February, a dip to 48.8 in March, and 52.8 in May, before settling into a steady run of expansion through the summer.

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