The economy tracker indicates that Saudi Arabia's Purchasing Managers' Index (PMI) for September increased to 57.2, surpassing the August figure of 56.6. This rise reflects enhanced business confidence within the non-oil private sector. According to the Saudi Arabia PMI report by Riyad Bank, which was compiled by S&P Global, the country experienced a notable surge in economic activity and the establishment of new businesses in the non-oil private sector in September. This trend signifies improved market conditions and a rise in client orders.

The upturn can be attributed to increased business activities, with 27 percent of surveyed companies reporting growth in production across the four major sectors monitored by the survey. Despite the challenges stemming from current monetary policy conditions, Naif Al Ghaith, the chief economist at Riyad Bank, stated that the non-oil economy continues to grow. He predicts that non-oil GDP will remain above 5.5 percent for 2023, supported by the ongoing reforms outlined in Vision 2030.

Sales growth also played a crucial role in boosting economic activity. The report highlights that improved market conditions and discounts offered by firms to counter competition were key drivers behind the increased volume of client orders. However, competitive pressures have constrained sales for some businesses and led to a decrease in selling prices for the second time in three months.

Purchasing activity has risen to meet the demand for inputs, and employment levels have experienced a modest but notable increase, marking the fastest growth in five years. Consequently, despite rising raw material costs and higher wages, the increase in purchasing and employment has put pressure on profit margins but significantly reduced outstanding business, marking the fastest reduction in a year.

The report concludes that output expectations for September rose sharply, with firms expressing optimism that market conditions and increasing sales would continue to support expansion in economic activity