The Kingdom of Saudi Arabia’s flag
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly SP Global Saudi Arabia PMI, fell to 56.3 points in July. 
The latest reading indicated a strong improvement in business conditions compared to the previous month, supported by growth in output, new orders, purchasing activity, and employment.
Saudi Arabia’s non-oil private sector companies saw a robust expansion in output during July, fueled by ongoing projects and a steady flow of new orders. However, this month’s expansion slowed to its weakest pace in three and a half years.
The report also noted growing demand levels, which corporates generally attributed to favorable domestic market conditions and increased efforts by sales teams to fulfill orders.
Nonetheless, signs of rising competition and a shrinking customer base began to weigh on growth. Companies reported challenges in attracting new foreign clients, resulting in a decline in new export orders for the first time in nine months.
Input cost pressures remained elevated across the Kingdom’s non-oil private sector in July, despite a slight easing in the inflation rate compared to the Q2 average. This was largely driven by another sharp increase in wage expenses, as companies sought to retain staff and offer bonuses.
In response to growing activity and stronger demand, firms expanded their workforce in July. The report recorded a sharp, historical-high surge in employment, following the steepest rise in over 14 years that had been posted in June.
Saudi PMI since 2023*
Month
Index (Points)
Change (Points)
Change (%)
Jan. 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
—
—
Jan. 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%)
Jan. 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%)
The PMI is a weighted average of the following five sub-indices:
PMI Sub-Indices
Sub-Index
Ratio to Total
New Orders
30%
Production
25%
Employment
20%
Supplier Delivery Time
15%
Purchase Inventory
10%
Total
100%
The Kingdom of Saudi Arabia’s flag
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI), formerly SP Global Saudi Arabia PMI, fell to 56.3 points in July.
The latest reading indicated a strong improvement in business conditions compared to the previous month, supported by growth in output, new orders, purchasing activity, and employment.
Saudi Arabia’s non-oil private sector companies saw a robust expansion in output during July, fueled by ongoing projects and a steady flow of new orders. However, this month’s expansion slowed to its weakest pace in three and a half years.
The report also noted growing demand levels, which corporates generally attributed to favorable domestic market conditions and increased efforts by sales teams to fulfill orders.
Nonetheless, signs of rising competition and a shrinking customer base began to weigh on growth. Companies reported challenges in attracting new foreign clients, resulting in a decline in new export orders for the first time in nine months.
Input cost pressures remained elevated across the Kingdom’s non-oil private sector in July, despite a slight easing in the inflation rate compared to the Q2 average. This was largely driven by another sharp increase in wage expenses, as companies sought to retain staff and offer bonuses.
In response to growing activity and stronger demand, firms expanded their workforce in July. The report recorded a sharp, historical-high surge in employment, following the steepest rise in over 14 years that had been posted in June.
Saudi PMI since 2023*
Month
Index (Points)
Change (Points)
Change (%)
Jan. 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
—
—
Jan. 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%)
Jan. 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%)
The PMI is a weighted average of the following five sub-indices:
PMI Sub-Indices
Sub-Index
Ratio to Total
New Orders
30%
Production
25%
Employment
20%
Supplier Delivery Time
15%
Purchase Inventory
10%
Total
100%
