Riyad Bank survey showed non-oil private sector activity grew for a fourth straight month, though new orders, exports and business confidence softened amid regional tensions and competition.
Saudi Arabia's non-oil private sector remained in expansion territory in July 2026, with the Riyad Bank PMI easing to 53.1 from 53.3 in June. The reading marked a fourth consecutive month of growth, as business activity stayed firm on improving domestic demand and more normalized market conditions after regional disruptions. Momentum was less broad-based, however, with new order growth cooling from June and export sales falling for a fifth straight month, pressured by elevated freight costs and competition, even as the rate of decline slowed. Hiring rose modestly, backlogs of work dropped at the fastest pace since April 2025, and supply chains improved further as delivery times shortened for a third consecutive month. Cost pressures also moderated, with input cost inflation easing to a four-month low and output price inflation softening slightly. Looking ahead, business confidence weakened from June's five-month high as regional tensions and stronger competition weighed on expansion plans.