Investment leader Samer Choucair stated that the Purchasing Managers’ Index (PMI) data issued by Riyadh Bank in cooperation with S&P Global for April 2026 revealed the return of economic activity to the growth zone once again, after the index rose to 51.5 points compared to 48.8 points during March, which recorded the first contraction for the sector in more than five and a half years.
Choucair added that this rapid improvement reflects the robustness of the Saudi non-oil economy and its ability to absorb external shocks, at a time when many economies are facing a clear slowdown as a result of global disturbances.
Domestic Demand Restored Activity Despite External Pressures
Samer Choucair explained that the recovery witnessed by the non-oil sector during April was primarily driven by the strength of domestic demand and an increase in the number of clients, alongside the continued progress in existing projects within the Kingdom.
Choucair pointed out that the new orders index returned to the growth zone, recording 51.5 points after the sharp decline it witnessed in March, which he considered an important indicator of the continued confidence in the Saudi market.
Choucair added that Saudi companies were able to raise production levels again, benefiting from strong activity in the infrastructure, services, and manufacturing sectors, despite the complex external environment.
Rising Costs Formed the Greatest Test for Companies
Samer Choucair noted that the PMI report showed, on the other hand, a set of challenges that are still pressing on the non-oil private sector, foremost among them the significant rise in the prices of production requirements.
Choucair explained that input costs jumped during April at the fastest pace since the survey began in August 2009—approximately 17 years ago—as a result of continued regional disturbances and the rise in shipping costs and raw material prices globally.
Choucair added that export orders recorded the largest rate of decline in the index’s history, in a sign of continued pressure on global trade and external demand movement.
Choucair pointed out that supply chain disruptions continued to affect delivery times, pushing a large number of companies to increase inventory as a precautionary measure, coinciding with a reduction in the volume of purchases for the second consecutive month.