‎Saudi PMI drops to 54 points in October

‎Saudi PMI drops to 54 points in October ‎Saudi PMI drops to 54 points in October

​‎

The Kingdom of Saudi Arabia’s flag

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy, formerly known as the SP Global Saudi Arabia PMI, fell to 54 points in October 2026, compared to 55.3 points in September.

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According to the report, Saudi Arabia’s non-oil private sector continued to expand in October, with data pointing to a faster increase in business activity and strong demand growth.

The report noted that the rise in new business was less pronounced than in September, when it reached a seven-month high. Meanwhile, growth in both employment and purchasing activity slowed, while business confidence remained subdued amid ongoing concerns over geopolitical tensions and rising costs.

Demand continued to rely on the domestic market, with new export orders declining for the eighth consecutive month and at a faster pace. On the pricing front, input cost inflation accelerated to its highest level since June. However, increased competition prompted companies to raise selling prices at their slowest pace in nine months.

Output growth accelerated from its September level, reaching a strong pace, although it remained below historical norms. Companies attributed the increase in activity to stronger underlying demand, alongside intensified sales and marketing efforts.

Export sales also declined at a sharper rate, with nearly a quarter of survey respondents reporting a decrease amid increased shipping disruptions, higher freight and insurance costs, and competitive market conditions.

The report highlighted continued pressure on supply chains, with supplier delivery times improving only marginally, marking the weakest improvement since April while ongoing disruptions to maritime routes continued to affect deliveries, prompting some companies to increase their reliance on domestic sources to meet more of their needs.

The report also highlighted mounting cost pressures at the start of the fourth quarter, as purchase prices rose at their fastest pace in six months, driven by higher freight, insurance, raw material, and energy costs, while staff cost inflation accelerated to its fastest pace since February.

Saudi PMI since 2023*

Month

Index (points)

Change (points)

Change (%)

January 2023

58.2

+ 1.3

+2.3 %

February

59.8

+ 1.6

+2.7 %

March

58.7

(1.1)

(1.8%)

April

59.6

+ 0.9

+1.5 %

May

58.5

(1.1)

(1.8%)

June

59.6

+ 1.1

+1.9 %

July

57.7

(1.9)

(3.2%)

August

56.6

(1.1)

(1.9%)

September

57.2

+ 0.6

+1.1 %

October

58.4

+ 1.2

+2.1 %

November

57.5

(0.9)

(1.5%)

December

57.5

—

—

January 2024

55.4

(2.1)

(3.7%)

February

57.2

+ 1.8

+3.2 %

March

57.0

(0.2)

(0.3%)

April

57.0

—

—

May

56.4

(0.6)

(1.1%)

June

55.0

(1.4)

(2.5%)

July

54.4

(0.6)

(1.1%)

August

54.8

+ 0.4

+ 0.7 %

September

56.3

+ 1.5

+ 2.7 %

October

56.9

+ 0.6

+ 1.1 %

November

59.0

+ 2.1

+ 3.7 %

December

58.4

(0.6)

(1.0%)

January 2025

60.5

+ 2.1

+ 3.6 %

February

58.4

(2.1)

(3.5%)

March

58.1

(0.3)

(0.5%)

April

55.6

(2.5)

(4.3%)

May

55.8

+ 0.2

+ 0.4 %

June

57.2

+ 1.4

+ 2.5 %

July

56.3

(0.9)

(1.6%)

August

56.4

+ 0.1

+0.2%

September

57.8

+ 1.4

+ 2.5 %

October

60.2

+ 2.4

+ 4.2 %

November

58.5

(1.7)

(2.8%)

December

57.4

(1.1)

(1.9%)

January 2026

56.3

(1.1)

(1.9%)

February

56.1

(0.2)

(0.4%)

March

48.8

(7.3)

(13%)

April

51.5

+ 2.7

+ 5.5 %

May

52.8

+ 1.3

+ 2.5 %

June

53.3

+ 0.5

+ 0.9 %

July

53.1

(0.2)

(0.4%)

August

53.8

+ 0.7

+ 1.3 %

September

55.3

+ 1.5

+ 2.8 %

October

54.0

(1.3)

(2.4%)

*Change on a monthly basis.

Riyad Bank PMI Components

Sub-index

Weight

New orders

30%

Output

25%

Employment

20%

Suppliers’ delivery times

15%

Inventories

10%

Total

100%

 

‎

The Kingdom of Saudi Arabia’s flag

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) for the whole economy, formerly known as the SP Global Saudi Arabia PMI, fell to 54 points in October 2026, compared to 55.3 points in September.

According to the report, Saudi Arabia’s non-oil private sector continued to expand in October, with data pointing to a faster increase in business activity and strong demand growth.

The report noted that the rise in new business was less pronounced than in September, when it reached a seven-month high. Meanwhile, growth in both employment and purchasing activity slowed, while business confidence remained subdued amid ongoing concerns over geopolitical tensions and rising costs.

Demand continued to rely on the domestic market, with new export orders declining for the eighth consecutive month and at a faster pace. On the pricing front, input cost inflation accelerated to its highest level since June. However, increased competition prompted companies to raise selling prices at their slowest pace in nine months.

Output growth accelerated from its September level, reaching a strong pace, although it remained below historical norms. Companies attributed the increase in activity to stronger underlying demand, alongside intensified sales and marketing efforts.

Export sales also declined at a sharper rate, with nearly a quarter of survey respondents reporting a decrease amid increased shipping disruptions, higher freight and insurance costs, and competitive market conditions.

The report highlighted continued pressure on supply chains, with supplier delivery times improving only marginally, marking the weakest improvement since April while ongoing disruptions to maritime routes continued to affect deliveries, prompting some companies to increase their reliance on domestic sources to meet more of their needs.

The report also highlighted mounting cost pressures at the start of the fourth quarter, as purchase prices rose at their fastest pace in six months, driven by higher freight, insurance, raw material, and energy costs, while staff cost inflation accelerated to its fastest pace since February.

Saudi PMI since 2023*

Month

Index (points)

Change (points)

Change (%)

January 2023

58.2

+ 1.3

+2.3 %

February

59.8

+ 1.6

+2.7 %

March

58.7

(1.1)

(1.8%)

April

59.6

+ 0.9

+1.5 %

May

58.5

(1.1)

(1.8%)

June

59.6

+ 1.1

+1.9 %

July

57.7

(1.9)

(3.2%)

August

56.6

(1.1)

(1.9%)

September

57.2

+ 0.6

+1.1 %

October

58.4

+ 1.2

+2.1 %

November

57.5

(0.9)

(1.5%)

December

57.5

—

—

January 2024

55.4

(2.1)

(3.7%)

February

57.2

+ 1.8

+3.2 %

March

57.0

(0.2)

(0.3%)

April

57.0

—

—

May

56.4

(0.6)

(1.1%)

June

55.0

(1.4)

(2.5%)

July

54.4

(0.6)

(1.1%)

August

54.8

+ 0.4

+ 0.7 %

September

56.3

+ 1.5

+ 2.7 %

October

56.9

+ 0.6

+ 1.1 %

November

59.0

+ 2.1

+ 3.7 %

December

58.4

(0.6)

(1.0%)

January 2025

60.5

+ 2.1

+ 3.6 %

February

58.4

(2.1)

(3.5%)

March

58.1

(0.3)

(0.5%)

April

55.6

(2.5)

(4.3%)

May

55.8

+ 0.2

+ 0.4 %

June

57.2

+ 1.4

+ 2.5 %

July

56.3

(0.9)

(1.6%)

August

56.4

+ 0.1

+0.2%

September

57.8

+ 1.4

+ 2.5 %

October

60.2

+ 2.4

+ 4.2 %

November

58.5

(1.7)

(2.8%)

December

57.4

(1.1)

(1.9%)

January 2026

56.3

(1.1)

(1.9%)

February

56.1

(0.2)

(0.4%)

March

48.8

(7.3)

(13%)

April

51.5

+ 2.7

+ 5.5 %

May

52.8

+ 1.3

+ 2.5 %

June

53.3

+ 0.5

+ 0.9 %

July

53.1

(0.2)

(0.4%)

August

53.8

+ 0.7

+ 1.3 %

September

55.3

+ 1.5

+ 2.8 %

October

54.0

(1.3)

(2.4%)

*Change on a monthly basis.

Riyad Bank PMI Components

Sub-index

Weight

New orders

30%

Output

25%

Employment

20%

Suppliers’ delivery times

15%

Inventories

10%

Total

100%

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