Consumer spending in Saudi Arabia remained robust above $3.5 billion in the week ending September 12, despite a 12.9 percent decrease from the previous week, official data from the Saudi Central Bank (SAMA) showed. The decline largely followed the conclusion of the annual back-to-school period, which had previously driven a surge in education-related expenditures.

During the week, point-of-sale transactions reached SR13.79 billion ($3.68 billion), with a total of 254.91 million transactions recorded, marking a 4.8 percent drop in transaction volume compared to the prior week. The sharpest sectoral contraction was seen in education spending, which fell 58.2 percent to SR316.15 million, while the number of education-related transactions decreased by 22.9 percent.

Other sectors also experienced declines: spending on food and beverages dropped 15.1 percent to SR8.23 billion, and restaurant and café expenditures fell 6.7 percent to SR1.69 billion. Apparel, clothing, and accessories declined 14.1 percent to SR1.10 billion, transportation spending decreased 12.7 percent to SR1.01 billion, and gas station spending declined 3.3 percent to SR1.05 billion. Healthcare outlays were down 4.8 percent to SR918.33 million, while professional and business services fell 9.6 percent to SR819.97 million. Books and stationery, which are closely tied to education, dropped 23.9 percent to SR38.93 million. Furniture and home supplies was one of the few categories to register growth, with spending rising 0.8 percent to SR452.37 million.

Economist Talat Hafiz characterized the week-on-week decline as a “normalization” rather than the beginning of sustained weakening in consumer spending. He attributed the prior elevated figures to strong back-to-school purchases and consumers returning from annual vacations, factors that typically influence spending patterns during this transitional period. Hafiz suggested that spending in sectors connected to daily needs would remain relatively stable, though subject to short-term fluctuations as consumer demand adjusts. He noted that overall spending trends are expected to stabilize as seasonal effects wane.

Regionally, Riyadh remained the largest contributor to point-of-sale transactions, with spending totaling SR4.87 billion—down 12 percent week-on-week—and 84.81 million transactions, a 3.8 percent decline. Jeddah followed with SR1.89 billion in spending, down 11.9 percent, and 28.54 million transactions. Dammam recorded SR689.96 million, a 9.5 percent decrease; Makkah SR535.60 million, down 12.8 percent; and Madinah SR519.35 million, down 12.3 percent. In other cities, Alkhobar saw transactions worth SR384.69 million, down 8.9 percent, while Buraidah and Abha reported SR240.90 million and SR167.19 million, respectively, with Abha experiencing the steepest decline at 16.1 percent.