Saudi Non-Oil Economy Continues Growth Amid Global Trade Challenges
Saudi Arabia's non-oil private sector continues to expand, driven by strong domestic demand and ongoing growth in output. The Purchasing Managers' Index (PMI) survey released by Riyad Bank and S&P Global shows that the headline PMI edged down to 53.1 in July from 53.3 in June.
The non-oil economy remains resilient, despite continued pressure on exports and a slowdown in new business growth. The data suggest that recent regional disruptions are fading, and markets are gradually returning to normal.
Nearly all sectors of the economy are showing improvement, with domestic demand supporting both output and new orders. However, export orders declined for the fifth consecutive month due to higher shipping costs and competitive pressures overseas.
The labor market is also recovering, with a modest increase in employment after stagnation in June. Input costs are slowing, but labor costs continue to rise, reflecting ongoing wage pressures and competition for skilled talent.