The latest Ipsos Primary Consumer Sentiment Index (PCSI) for Saudi Arabia, released in May 2024, shows a positive consumer outlook and 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 increase reflects growing consumer confidence in Saudi Arabia’s economic direction, with 95% of respondents believing that the country is heading in the right direction. This level of confidence surpasses major economies like China and India.
The survey also reveals that 73% of respondents rate the current state of the local economy as strong, with 24% rating it as neither strong nor weak. Looking ahead, 87% expect the economy to be stronger in six months, indicating overwhelming optimism about future economic conditions. On a personal financial level, 47% of respondents rate their situation as strong, with 8% as neither strong nor weak, and 45% as weak. However, 77% expect their personal financial situation to improve over the next six months, showing high personal financial optimism.
Job security confidence remains robust, with 78% of respondents feeling more secure about their jobs compared to six months ago. Additionally, confidence in making major purchases, such as 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 overall consumer sentiment in Saudi Arabia is significantly higher than the global average PCSI of 50.2.
The top five concerns for consumers in Saudi Arabia are inflation (44%), unemployment and jobs (30%), taxes (28%), climate change (26%), and COVID-19 (21%). Despite these concerns, the Kingdom’s financial and economic expectations rank higher than many other countries, indicating a strong consumer sentiment in the region. This positive outlook is reflected in the confidence levels of Saudi consumers in various aspects of their lives, from the economy to personal finances.
Overall, the Ipsos PCSI for Saudi Arabia in May 2024 indicates a positive consumer sentiment with growing confidence in the country’s economic future. The high level of confidence in Saudi Arabia’s economic direction, as well as in personal financial situations and job security, shows strong optimism among consumers. Despite concerns such as inflation, unemployment, and climate change, Saudi consumers remain positive about the future. This optimism is reflected in the Kingdom’s higher-than-average financial and economic expectations compared to other countries, highlighting a particularly strong consumer sentiment in the region.
