Saudi Non-Oil Sector Gains Momentum Amid Regional Headwinds

Saudi Arabia's non-oil private sector showed signs of growth in August, according to the PMI from Riyad Bank. The index rose to 53.8 from 53.1, indicating an expansion of business conditions.

The increase in output reached a seven-month high, while new orders rose for the fifth consecutive month. However, export orders fell for a sixth month due to regional conflict and foreign competition.

Despite this, cost pressures cooled to a five-month low, and selling-price inflation eased to its weakest since March. The decline in backlogs suggests that companies have spare capacity, which could be used to meet demand without raising prices.