Riyadh – Mubasher: Capital Economics reported that the latest continued slowdown in the Saudi economy was attributed to the weakness in the oil sector, expecting it to continue to trim headline gross domestic production (GDP) growth this year after the Organisation of Petroleum Exporting Countries (OPEC) agreed to reduce its output for a further nine months.

Although the Saudi oil sector was weak in the past period, the economy’s results were good in general, especially after the growth of the non-oil sector by 2.2% year-on-year in March, the report said.

The Purchasing Managers' Index (PMI) edged up in April from 56.4 to 56.5, which is higher than last year’s average of 54.8.

Capital Economics highlighted that the Saudi government’s recent decision to reverse cuts to civil service benefits has prompted a jump in consumer confidence.