Saudi Arabia's non-oil private sector strengthened its expansion in June, buoyed ​by the ⁠sharpest pick-up in new business in four months, ‌though firms continued to grapple with steep cost pressures and weakening ​foreign demand, a survey showed on Sunday.

The seasonally adjusted Riyad Bank ​Saudi Arabia ​Purchasing Managers' Index rose to 53.3 in June from 52.8 in May, marking the highest reading ⁠in four months and signalling a solid improvement in operating conditions at the close of the second quarter.

Output growth held broadly steady, with roughly 18% of surveyed ​firms ‌reporting higher activity ⁠against just ⁠2% recording declines.

Panellists credited fresh project approvals, stronger customer demand and the ​revival of orders previously delayed ‌by conflict in the region.

New business ⁠volumes climbed at the fastest pace since February, as easing geopolitical concerns lifted investor confidence and domestic spending.

"Stronger output and the fastest increase in new orders in four months suggest that business activity regained momentum towards the end of the second quarter," said Naif Al-Ghaith, chief economist at Riyad Bank.

Not all ‌indicators were rosy, however. Export orders contracted steeply ⁠for a fourth consecutive month amid logistical ​bottlenecks and stiff foreign competition, while hiring stagnated.

Meanwhile, input costs capped their steepest quarter in 15 years, prompting ​firms to ‌raise output charges at the second-squickest rate ⁠in nearly six ​years. (Reporting by Reuters; Editing by Toby Chopra)