Riyad Bank Saudi Arabia’s PMI rose sharply to 60.2 in October 2025 from 57.8 in September, signaling one of the strongest improvements in non-oil private sector conditions since 2014. The acceleration was driven by robust gains in new business, output, and employment, as nearly half of surveyed firms reported higher sales amid rising domestic demand and increased foreign investment. Business activity expanded markedly, supported by faster hiring, the quickest pace in almost 16 years, as companies boosted capacity to meet growing workloads. Purchasing and inventory levels also strengthened, while suppliers’ delivery times improved despite heightened demand. On prices, firms faced faster input cost inflation due to rising wages and imported material costs, prompting the steepest increase in output charges since May 2023. Looking ahead, business optimism remained strong, underpinned by resilient demand, ongoing projects, and confidence in the Kingdom’s non-oil growth momentum.
