Consumer sentiment in Saudi Arabia shows positive trends: Ipsos report

PHOTO

RIYADH — The latest Ipsos Primary Consumer Sentiment Index (PCSI) for Saudi Arabia, released in May 2024, indicates an overall positive consumer outlook, reflecting strong confidence in the country's economic future.

The PCSI for May 2024 stands at 72.7, slightly up from 71.9 in April. This positive shift demonstrates growing consumer confidence in Saudi Arabia's economic direction. A significant 95% of respondents believe that the country is heading in the right direction. This is one of the highest confidence levels globally, surpassing major economies like China (91%) and India (78%).

When asked to rate the current state of the local economy, 73% of respondents rated it as strong, and 24% as neither strong nor weak. Looking ahead, 87% expect the economy to be stronger in six months, showing overwhelming optimism about future economic conditions.

Currently, 47% of respondents rate their personal financial situation as strong, 8% as neither strong nor weak, and 45% as weak. Looking forward, 77% expect their personal financial situation to improve over the next six months, indicating high personal financial optimism.

Confidence in job security remains robust, with 78% of respondents feeling more secure about their jobs compared to six months ago.

Confidence in the ability to make major purchases, like homes or cars, has increased, with 77% feeling more comfortable compared to six months ago. Similarly, 75% are more confident in their ability to invest in the future, including saving for retirement and children’s education.

The top five concerns for consumers are inflation (44%), unemployment and jobs (30%), taxes (28%), climate change (26%), and COVID-19 (21%).

Saudi Arabia's consumer confidence is significantly higher than the global average PCSI of 50.2. The Kingdom’s financial and economic expectations also rank higher than many other countries, indicating a particularly strong consumer sentiment in the region.