Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in September, driven by a surge in new orders and increased output, a survey showed on Sunday.
Saudi Arabia's government is forecasting real GDP growth of 4.4% in 2025, with estimated non-oil sector growth of 5% © Mena Today
Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in September, driven by a surge in new orders and increased output, a survey showed on Sunday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) climbed to 57.8 in September from 56.4 in August, indicating the strongest improvement in operating conditions since March.
New orders saw a marked increase, with firms benefiting from strong market conditions, new customer acquisitions, and competitive pricing. This led to a rise in new work from international clients for the second consecutive month.
Robust domestic and international demand helped the new order subindex jump to 63.3 in September from August's 60.1.
Output growth experienced the quickest rate of increase since February.
"Overall, September’s survey highlights a resilient private sector that is navigating cost pressures while benefiting from firm demand and steady hiring," said Naif Al-Ghaith, Riyad Bank's chief economist.
Saudi Arabia's government is forecasting real GDP growth of 4.4% in 2025, with estimated non-oil sector growth of 5%, supported by increased domestic demand and improved rates of employment, according to a pre-budget statement.
Employment growth remained strong in September, driven by higher demand and the need to manage workloads efficiently. Companies increased hiring steadily, although the related subindex saw a slight downward tick from the previous month.
Input price inflation, driven by higher wages and supplier costs, edged down to a six-month low.
Optimism for future activity improved, with firms confident about increased demand and upcoming large-scale infrastructure projects.
Editing by Hugh Lawson
Saudi oil giant Aramco announced Tuesday a 44% surge in net profit for the second quarter compared to the same period last year, driven by soaring crude prices amid the war in the Middle East.
U.S. President Donald Trump said talks with Iran will happen on Monday but declined to set a deadline for an agreement after earlier saying he had called off an imminent attack in hopes of quickly reaching a deal to reopen the Strait of Hormuz and resolve the impasse over Tehran's nuclear capabilities.
Saudi Arabia, Russia and five other OPEC+ members meeting online Sunday agreed to raise oil production quotas for September, even as war rages across the Middle East.
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