Saudi Arabia: Non-Oil PMI Tumbles to Second Lowest on Record.

Riyad Bank Saudi Arabia’s PMI plunged to 48.8 in March 2026 from 56.1 in the prior month, signaling the first drop in the non-oil private sector in near six years and the steepest downturn since a record low in March 2020. The decline stemmed from Middle East war disruptions that strained supply chains and delayed client spending. New orders stalled, export demand shrank the most in six years, and output growth eased. Buying levels slowed, though inventories rose, reflecting limited stockpile reduction. Employment rose but at a weaker pace, while delivery times lengthened the most since June 2020 amid shipping delays and higher fuel costs. Supply constraints lifted backlogs to their highest since July 2018. On inflation, input cost rose the least in a year on softer wage pressures, though fuel and freight costs raised purchasing and selling prices. Sentiment dipped to its lowest since June 2020, as war concerns overshadowed support from government spending.