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PMI data shows that Saudi Arabia's growth in the non-oil sector slowed down in April.

A survey released on Monday showed that Saudi Arabia's private sector non-oil activity expanded at a slower pace in April due to a sharp slowdown in the growth of new orders, while hiring rates were at their highest level in over a decade.

The Riyad Bank Saudi Arabia Purchasing Managers' Index slid from 58.1 to 55.6, its lowest reading since August last year, down from 58.1. It is still firmly in the growth zone.

The third consecutive month of decline in the new orders subindex, from 63.2 to 58.6, reflected the global economic uncertainty and the competitive pressures.

Naif Al Ghaith is the chief economist at Riyad bank. He said that while output growth remains strong, it has been somewhat dampened by global economic uncertainty and pressures from competitors affecting consumer spending.

"Despite this, the employment figures are still on the rise, showing a consistent growth trend since May last year."

Businesses increased their staffing to meet the demand. The rise in employment is a result of rising sales and business activities.

The survey found that the level of business optimism was lower than the average over the course of the survey.

Saudi Arabia's economy grew by 2.7% in its first quarter. This was largely due to the growth of the non-oil sectors as the country continues its diversification away from hydrocarbons.

The state statistics authority has expanded and updated its data collection in order to align the data with international standards. Reporting by Hugh Lawson; Editing by Hugh Lawson

(source: Reuters)