Saudi Arabia’s non-oil private sector experienced slower growth in April, as a sharp drop in new orders offset an upswing in hiring. The latest Riyad Bank Purchasing Managers’ Index fell to 55.6, its lowest since last August, indicating expansion but at a reduced pace compared to the previous month.
The deceleration in new orders was attributed to global economic uncertainty and increased competition, with this metric declining for the third consecutive month. Despite these challenges, employment in the sector rose at one of the fastest rates in over ten years, as businesses added staff to support ongoing demand.
Although business activity and output remain strong, overall optimism among firms lags behind long-term averages. The broader Saudi economy grew by 2.7% in the first quarter, driven by gains in non-oil industries as the country advances its diversification efforts. Authorities have also enhanced data collection methods to better reflect the growing importance of non-oil sectors.