Saudi Arabia’s real GDP growth improved in 2014 as oil sector growth was higher than expected, while the non-oil sector continued its healthy expansion, a report said.

November data showed a rebound in consumer spending compared to the previous month, added the Saudi Chartbook 2015 released by Jadwa Investment, a leading Saudi investment group licensed by the Capital Market Authority, noting that the PMI (Purchasing Managers’ Index) slowed for the second consecutive month.

Key observations in the report:

Monetary indicators: Month-on-month bank lending to private sector declined for the first time since December 2011.

Inflation: Inflation further cooled off during November as both the food and housing components slowed.

Balance of payments: The current account surplus fell in the third quarter owing to a record high deficit in the services account.

Oil –Global: Brent crude oil fell to a five and half year low below $57 per barrel in December as ample global supply outweighed lost production from Libya. WTI came under pressure as both U.S crude and gasoline stocks surged, month-on-month.

Oil –Regional: Saudi crude production declined slightly, month-on-month, in November. Libyan production declined once more as internal conflict in the country resurfaced.

Exchange rates: Diverging expectations about monetary policies in the U.S on one side and the Euro zone and Japan on the other side saw the dollar continuing to strengthen in December.

Stock market: Investor sentiment continues to be negatively affected by lower oil prices but seasonal factors, such as the holiday period in most parts of the world, also dampened investor appetite during December.

Volumes: Average daily turnover jumped by 19.8 per cent in December, month-on-month, reversing the negative trend of the three previous months.

Valuations: The decline in the TASI during December saw valuations recover, month-on-month, although price to earnings (P/E) still remain below the two year average.

Sectoral performance: The drop in TASI during December meant that only three sectors saw positive performance during the month.  – TradeArabia News Service