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Saudi Arabia’s non-oil private sector posted one of its strongest performances since 2014 in October, driven by robust demand and hiring.
However, input cost pressures accelerated, prompting the sharpest output price hikes in over two years.
The Riyad Bank PMI rose from 57.8 in September to 60.2, signaling the second-fastest upturn since 2014.
“The acceleration was driven by broad-based gains in output, new orders, and employment, reflecting sustained demand momentum and continued strength in the non-oil economy. The latest survey results indicate a strong start to the final quarter, supported by both domestic and external demand,” said Naif Al-Ghaith, Chief Economist at Riyad Bank.
Growth in new orders strengthened for the third month, with 48% of firms reporting higher sales, supported by better economic conditions, rising client numbers, and foreign investment.
Output and employment expanded sharply, with job creation hitting its fastest pace in nearly 16 years.
October data showed a sharp rise in input costs for Saudi Arabia’s non-oil private sector, driven mainly by wage increases from salary revisions and bonuses. Firms also faced higher purchase prices due to costlier imported raw materials. These overhead pressures led to the fastest output price inflation since May 2023.
Looking ahead, business activity expectations among non-oil firms remained positive in October, though confidence was slightly lower than in September.
Strong market demand, ongoing project work, and government investment initiatives were cited as key drivers of optimism, the survey noted.
(Writing by Brinda Darasha; editing by Daniel Luiz)
