Riyad Bank Saudi Arabia’s PMI fell to 57.4 in December 2025 from 58.5 in November, signaling a cooling but still solid expansion in non-oil private sector activity as 2025 concluded. While marking the slowest growth in four months, the headline index remained slightly stronger than its long-run average, as business activity continued to rise, though it softened to its weakest since August. New orders increased sharply again but growth also moderated amid concerns over rising competition and market saturation. Employment growth remained robust, with firms continuing to expand capacity, even as backlogs accumulated at the fastest since July. On prices, inflationary pressures intensified as purchase prices rose more quickly, prompting firms to lift selling prices at a stronger pace, while wage pressures eased to their lowest in nearly two years. Business confidence weakened to its lowest since July, reflecting a more cautious outlook for 2026 despite expectations of continued growth.
