Saudi Gazette report

RIYADH – Total spending of consumers in Saudi Arabia this May amounted to SR91.10 billion, which is an increase of 8.31 percent against SR84.11 billion a year ago.

“There was 10.16 percent increase in consumer spending in May compared to April 2018, when the spending was SR82.71 billion,” a statistical report said.

The report issued by Saudi Arabian Monetary Agency attributed the increase in spending to large-scale household purchases at the end of Shaban and beginning of Ramadan.

“It was the largest spending in 23 months,” said the report carried by Al-Eqtisadiah business daily. The spending in May 2016 was SR91.3 billion.

There was considerable improvement in consumer spending in the beginning of this year compared to last year as the average monthly spending reached SR82.1 billion against SR77.2 billion in the previous year.

The average spending in 2017 was slightly lower than that of 2016 as a result of a major fall in purchases in the third quarter of 2017, when average spending was the lowest compared to the previous two years.

The increased spending in May 2018 followed large-scale withdrawals from ATMs and banks across the country, registering an increase of 4.3 percent compared to May 2017. Sales increased in May 2018 by SR4.2 billion (22.3 percent).

Foodstuffs and drinks accounted for 93 percent of spending in May 2018 (SR3.16 billion). Food and drinks represented 13.7 percent of goods at sales points.

Spending on entertainment rose 31 percent with sales points collecting SR992 million while the spending on communications jumped to SR184 million in the same month.

Sales points in 2017 registered a 9.7 percent increase in collections to reach SR200.46 billion. The number of executed sales operations in the year reached 708.11 million compared to 524.56 million in 2016, according to the SAMA report.