Saudi Arabia’s non-oil private sector continued to expand for the seventh consecutive month in October 2026, supported by stronger business activity and sustained domestic demand, despite slower growth in new orders and employment.
According to the latest Riyad Bank Purchasing Managers’ Index (PMI), the index declined to 54.0 in October from 55.3 in September, remaining above the 50-point threshold that separates expansion from contraction. The reading marked the second-highest level since February, indicating continued improvement in non-oil business conditions.
Business output growth accelerated during October, driven by stronger domestic demand and increased sales and marketing activities. New orders continued to rise, although at a slower pace than in September, when growth reached a seven-month high.
However, new export orders declined for the eighth consecutive month, reflecting ongoing global shipping disruptions, higher transportation and insurance costs, and intensified competition in international markets.
Meanwhile, input costs rose at their fastest pace since June, while selling price increases slowed to their lowest level in nine months, adding pressure on business margins.
Employment in the non-oil private sector increased for the fourth consecutive month, although hiring growth moderated compared with September. Companies also continued to expand purchasing activity and inventories to meet anticipated demand and mitigate potential supply chain disruptions.
Overall, the October PMI results highlight the resilience of Saudi Arabia’s non-oil economy, with domestic demand continuing to support business expansion despite external challenges and rising operating costs.
