Saudi Non-Oil PMI Rises to 53.3 in June 2026

Business activity in Saudi Arabia's non-oil private sector picked up pace in June 2026, with the Purchasing Managers' Index (PMI) rising to 53.3, its highest reading in four months, up from 52.8 in May 2026. Any figure above the 50 mark points to expansion in the sector.

The June improvement was driven by faster growth in new orders and a solid overall improvement in operating conditions across companies surveyed. May's reading of 52.8 already marked the strongest growth in three months, and June built on that momentum.

The recovery follows a softer stretch earlier in the year. The index stood at 56.3 in January 2026 and 56.1 in February, both signaling robust expansion, before slipping to 48.8 in March. That March figure indicated contraction and represented the first decline in non-oil business conditions in about five-and-a-half years. The return above 50 in the following months points to renewed strength in the sector.

Why it matters

The PMI is a closely watched gauge of the health of the non-oil economy, which sits at the heart of the country's economic diversification drive. The index is based on a monthly survey of 400 non-oil private-sector companies and uses 50 as the no-change threshold: readings above it signal growth, and readings below it signal contraction.

For residents and business owners, stronger non-oil activity typically reflects rising demand, new orders, and improving conditions for private companies across trade, services, and other sectors. Continued readings above 50 suggest steady expansion in the parts of the economy that touch everyday commerce and employment.

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