Saudi Arabia’s economy picked up in September following the seasonal slowdown in August. Indicators of consumer spending grew in both absolute and year-on-year terms, according to Saudi Chartbook released by the Riyadh-based Jadwa Investment.

The report also said cement sales started to rebound ahead of a pick up in construction activity as the weather improves.

Growth in bank claims on private sector remained fairly sluggish in September with a majority of the growth coming from claims with a long-term maturity profile. Excess bank reserves at SAMA (Saudi Arabian Monetary Agency) remained flat in September.

The Jadwa report said bank deposits rebounded in month-on-month terms in September, though the growth eased in annual terms suggesting the monthly expansion was largely due to seasonal factors.

Year-on-year inflation in Saudi Arabia slowed for the third consecutive month in September. While the core inflation remained on a downward trend since February, lower food and rental inflation have also contributed to slower inflation print in September.

According to the Jadwa report, nonoil trade deficit improved for the third consecutive month in August. Both imports and non-oil exports fell to their lowest levels this year owing mostly to seasonal factors in August, though the year-to-August growth remains positive for both.

Oil prices were on a downward trend in October as supply conditions marginally improved and refinery demand eased. A larger than expected increase in US crude inventories maintained the pressure on prices while security problems in Iraq and Libya could break this downtrend if they lead to a sustained fall in output.

The report said movements of major currencies over the past month have mostly been driven by central bank policies.

The Tadawul All-Share Index (TASI) recovered most of its losses in early October to end the month with a positive growth. While fiscal agreement in the US has, at least in the short term, improved global sentiment including in the Kingdom, regional geopolitical developments have limited the market’s upside, the report added.

Seven of the 15 sectors were up in October. Multi-the third quarter of this year, while petrochemicals and banks contributed slightly more than half of total net income in this quarter, the Jadwa report said.