Saudi consumer confidence growing, as economy surges
The latest research by consumer intelligence company, D/A, revealed that overall consumer confidence in Saudi witnessed a 4.6 percent increase in February to 48.4 percent, and for the first time in the history of the Index, was just 1.6 percent from net positivity.
Economic incentives, oil price improvements, and positive public news were all key factors that positively affected confidence. As a result, consumer sentiment towards the economy increased to 92.8 percent, up 1.5 percent from January, indicating nearly full positive sentiment and almost doubling since a negative reading in January 2021. As a result, business sentiment has also seen a marked increase, up 3.8 percent to 31.4 percent.
Employment consumer sentiment marginally fell by 0.1 percent, ultimately read as remaining flat, and in high net positivity territory at 84.3 percent. The slight adjustment can be attributed to a relatively calm market.
GCC consumer confidence
Overall, from a GCC perspective, the region rebounded well to see net consumer confidence increasing 0.7 percent in February to 58.1 percent from January’s 57.4 percent. Business confidence has rebounded strongly and is up 1.3 percent as concerns about regional politics, global economies subside. Employment sentiment recorded a month-on-month increase of 2.9 percent, continuing the positive theme.
Economically, GCC witnessed a marginal decline of 0.5 percent in February to 60.4 percent, driven mainly by the significant increase in living costs associated with high oil prices and global supply constrictions.
Paul Kelly, Managing Partner D/A, said: “The GCC certainly appears to have snapped back from January’s declines, predominantly led by sentiment towards business and employment. It is worth noting that economic consumer confidence across most GCC countries registered positive sentiment.