Riyad Bank Saudi Arabia’s PMI eased to 56.3 in January 2026 from 57.4 in December, the lowest in six months and slightly below its long-term average. Still, the reading is consistent with a robust expansion, suggesting growth momentum has cooled but operating conditions remain firmly in positive territory. Business activity continued to rise at a solid pace and new orders increased at a marked rate, reflecting resilient domestic conditions. Export demand also strengthened, as new export orders expanded at the fastest pace since October 2025. Employment growth remained strong, though the pace of hiring eased to the softest in a year after peaking last October. Cost pressures intensified for a second straight month, with higher input prices, purchase costs, and staff expenses, particularly for metals, materials, fuel, and technology. Business confidence improved from December but stayed below its long-term average, pointing to cautious optimism for 2026.

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