admin RIYADH: Saudi Arabia’s Business Confidence Index rose to 56.6 in June from 55.6 in May, marking a third consecutive monthly gain as confidence improved across the non-oil economy.
The June reading, released by the General Authority for Statistics, remained well above the neutral 50-point mark, indicating continued optimism among businesses following a sharp dip to 52.1 in March. The index recovered to 54.5 in April before climbing further in May and June.
The uptick comes despite lingering uncertainty after the US-Iran conflict disrupted supply chains and industrial activity in parts of the Middle East.
The improvement in business confidence aligns with broader indicators of private-sector activity. A report by S&P Global revealed that the Kingdom’s Purchasing Managers’ Index rose to 53.3 in June from 52.8 in May, driven by stronger domestic demand and new orders.
“The increase (in BCI) reflects prevailing optimism in the business sector, supported by establishments’ confidence in the stability of economic activity and continued growth across various sectors,” said GASTAT.
The BCI for the industry sector recorded an optimistic level of 55 points, representing an increase of 0.7 points compared to May. The increase reflected stronger confidence among industrial establishments, particularly in expectations for overall performance, sales, and purchase orders.
In the services sector, the confidence level rose to 55.5 points in June from 54.6 in the previous month, with establishments expressing heightened optimism, particularly regarding expectations for performance, sales, and employment.
Construction recorded the highest reading among the three sectors at 57.8 points, up from 56.7 in May, supported by positive expectations for overall performance, sales, and purchase orders.
“This level was driven by higher levels of optimism among establishments, particularly regarding expectations of overall performance, sales, and purchase orders,” added GASTAT.
The BCI is an economic indicator that measures business sentiment based on a survey of establishments operating across non-oil sectors, classified according to the International Standard Industrial Classification of All Economic Activities.
A report released by GASTAT last month revealed that the Kingdom’s gross domestic product expanded 3 percent year on year in the first quarter of 2026, reflecting broad-based growth across all major economic activities.
GASTAT added that both oil and non-oil activities grew 2.9 percent annually in the first quarter, while government activities rose 1.5 percent.
