From the skies above Riyadh, the city’s sprawl tells the story of an economy still pressing ahead. On the ground, Saudi Arabia’s non-oil private sector showed a touch more energy in August, edging higher after July’s pace.
The Riyad Bank Purchasing Managers’ Index nudged up to 56.4 from 56.3, well clear of the 50 mark that separates expansion from contraction. That small step was backed by healthier demand, a rebound in output, and more jobs being added across businesses.
“Growth may have cooled from its earlier peaks this year, but the core momentum is intact,” noted Riyad Bank’s chief economist, Naif Al-Ghaith.
New orders, both domestic and overseas, told a stronger story. Marketing pushes and tighter Gulf partnerships delivered the sharpest rise in export demand in four months. The new orders index climbed to 60.1 from 59.7, underlining solid appetite in the market.
Employment continued to grow, though at a gentler pace, as companies bulked up sales teams and launched projects. Inventories swelled to a four-month high, reflecting the steady stream of incoming orders.
Firms, however, faced a cost squeeze. Rising input prices—pulled up by global inflation—pushed businesses to raise selling prices for a third straight month.
Still, confidence brightened. After a year-low in July, optimism among firms improved, with expectations for future output leaning firmly toward growth.
