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RIYADH: Consumer confidence in ��������Ƶ remains at an optimistic, above-the-baseline level, but it declined for the second consecutive quarter.
The first quarter consumer confidence showed a two-point decrease from the previous quarter to an index of 104. Interestingly, confidence in neighboring UAE reported a four-point decline in Q1, matching the Saudi score.
Though oil prices showed some upward trend in early 2016, heavy rationalization in government spending, job security concerns and stubborn geopolitical situation are likely some of the key factors driving bearish consumer sentiments on the Saudi economy.
“Six in every ten respondents in ��������Ƶ believed the economy was in recession in the first quarter — recessionary sentiment rose in low double-digits,” said Arslan Ashraf, MD, Nielsen Arabian Peninsula and Pakistan.
“Consumers are more cautious with their spending and prioritizing their needs. They are more inclined to cut back on entertainment, upgrading of electronic gadgets and saving the money for rainy days. While retail sales of fast-moving consumer goods as measured by Nielsen are also showing slower growth in spite of depressed consumer sentiments, which are prevailing since last year, it is important to note that Saudi consumers are still upbeat about economic outlook on the long-term horizon. The Kingdom’s consumer confidence score, at the current level, is among the top 10 countries globally."
Global consumer confidence remained stable in Q1 and below the optimism baseline score of 100, edging up one index point to 98. The score reflected mixed confidence levels in every region.
In the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions, consumer confidence increased in 33 percent of measured markets (20 of 61 markets), compared to 43 percent of measured markets showing an increase in Q4, 2015.
The Nielsen consumer confidence index measures perceptions of local job prospects, personal finances and immediate spending intentions.