Riyadh - Mubasher: Saudi Arabia’s headline seasonally adjusted Purchasing Managers’ Index (PMI) increased to 57.8 in September 2025 from 56.4 in August, according to the latest Riyad Bank’s data.

The reading, which was above the 50 no-change mark, reflected the strongest improvement in operating conditions for six months.

Non-oil businesses raised output in September at the fastest pace since February, supported by stronger sales.

New orders also rose faster, driven by strong markets, new clients, marketing, and favorable pricing, boosting domestic and international sales for a second month.

Purchasing activity rose sharply to a three-month high, while employment continued to expand at a historically strong pace as firms added staff to manage rising workloads.

September’s survey showed input prices rising sharply, while output prices increased at a slower pace than in previous months.

The input inflation was driven by rising wage pressures, suppliers passing on higher costs, and broader inflation.

Employment growth was mainly attributed to higher demand, which led firms to recruit additional labour to complete work on time, boost efficiency, and expand sales teams.

Non-oil firms stayed optimistic, expecting higher demand, successful marketing, and new clients to drive growth.

Naif Al Ghaith, Chief Economist at Riyad Bank, said: “New business inflows rose more sharply, supported by both domestic and export orders. Companies pointed to successful advertising campaigns and stronger demand from the GCC region.”

“Overall, September’s survey highlights a resilient private sector that is navigating cost pressures while benefiting from firm demand and steady hiring,” the economist added.

He concluded: “With input inflation easing and selling charges kept modest, the economy appears well positioned as it enters the final quarter of 2025.”