03.02.202604:27:20UTC+00Saudi Non-Oil Private Sector Stays Expansionary

In January 2026, Riyad Bank Saudi Arabia's Purchasing Managers' Index (PMI) softened to 56.3, down from 57.4 in December. This marks the lowest point in six months and falls slightly below the long-term average. Nevertheless, the PMI reading indicates a period of strong growth, although the pace has recently decelerated, with operating conditions still robustly positive. Business activity sustained a healthy rise, with new orders increasing significantly, highlighting the resilience of domestic demand. Furthermore, international demand picked up, as new export orders grew at their fastest rate since October 2025. While employment growth remained robust, the rate of hiring slowed to its most moderate level in a year, following its peak last October. For the second consecutive month, cost pressures increased due to higher prices for inputs, purchases, and staff wages, particularly affecting the sectors of metals, materials, fuel, and technology. Although business confidence improved from December, it remained below its historical average, reflecting a cautiously optimistic outlook for 2026.