Saudi Non-Oil Sector PMI Rises to 53.8 in August

Saudi Arabia's non-oil private sector strengthened again in August 2026, as the Purchasing Managers' Index (PMI) rose to 53.8 from 53.1 in July. The reading marks a fifth consecutive month of expansion and the strongest level in six months.

The PMI is drawn from surveys of non-oil private sector firms. A figure above 50 signals a month-on-month improvement in business conditions, 50 indicates no change, and below 50 points to a decline. August's 53.8 therefore reflects broadly healthier activity across the sector.

Output grew at its fastest pace in about seven months, while new orders increased for the fifth month running, underpinning the overall improvement. However, the picture was uneven: international (export) orders fell sharply even as domestic demand rose, highlighting a growing gap between local and external markets.

What it means

The data points to firm domestic momentum, which supports jobs and business confidence for residents and companies alike. Staff costs climbed at their quickest rate since around February 2026, a sign that firms are hiring and paying more, though strong competition kept increases in selling prices relatively modest.

Despite the recent gains, the August reading remains below the sector's long-run average of about 56.8, suggesting the recovery still has room to run. For workers and small businesses across the Kingdom, the combination of rising output, steady new orders and contained price pressures offers a cautiously positive outlook for the months ahead.

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