Riyad Bank Saudi Arabia’s PMI rose to 52.8 in May 2026 from 51.5 in April, signaling a stronger improvement in non-oil private sector conditions. Output expanded at the fastest pace in three months, supported by stronger domestic demand, resumed projects, and normalized operations following earlier disruptions. However, new order growth remained modest, while export orders contracted sharply for a third consecutive month amid shipping disruptions, higher freight and fuel costs, and geopolitical tensions. Supply chain conditions improved, with delivery times shortening for the first time since February, while purchasing activity returned to growth. Employment also expanded modestly as firms worked through rising backlogs. Meanwhile, cost pressures remained elevated despite easing from April’s record high, prompting another sharp increase in selling prices. Business confidence remained subdued amid ongoing regional uncertainty.

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