Consumer spending in Saudi Arabia rose by 38% in the week to May 2, one of the biggest swings on record, as a ceasefire in the Iran war and month-end salary payments sparked a wave of discretionary purchases. Saudis splashing out on restaurant meals and new clothes helped drive the spending data, the figures from the central bank show.
The huge jump in spending compared to the previous week suggests the Gulf’s largest economy may be bouncing back from a slow start to the year, when it was limited by several large government projects being cancelled, and the Iran war shaking confidence and forcing many to stay at home. The kingdom’s purchasing managers’ index also rose to 51.5 in April, indicating a modest return to growth in its non-oil economy.
