RIYADH – Confidence in the Kingdom of Saudi Arabia (KSA) strengthened in the second quarter of 2017, rising four points to an index of 98.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions findings showed improvements in all of the country’s confidence indicators from the fourth quarter of 2016. In KSA, 45% of the respondents were confident about job prospects in the coming year, an increase of three percentage points. Respondents were also optimistic about their personal finances, with 56% believing they would be good or excellent in the next 12 months, an increase of eight percentage points from the fourth quarter of 2016. Almost half of respondents were confident about immediate-spending intentions, an increase of eight percentage points from the fourth quarter of 2016.

The percentage of respondents who cited the job security as a leading concern declined three percentage points. The economy (25%), parents’ welfare / happiness (18%), terrorism (18%) and increasing food prices (12%) topped the list of concerns cited by respondents.

“The recent government interventions in restoring the benefits for the public sector, has contributed to the rise in consumer sentiment, though still below the optimism baseline,” said Arslan Ashraf, managing director, Nielsen Arabian Peninsula and Pakistan. “Some are seen to be upbeat about spending, as there is an increase in the number of consumers who indicated that they intend to spend more on holidays/vacations, new clothing and home improvements.”

Regional highlights:

• Africa / Middle East saw the greatest change globally, with the region’s consumer confidence index rising five points to a score of 88. Regionally, all confidence indicators improved in the second quarter of 2017. More than half of respondents (53%) were confident that personal finances would be good or excellent in the next 12 months, which represents a six-percentage-point increase from the fourth quarter of 2016. Spending intentions increased two percentage points to 33%. Thirty-seven percent of respondents expected favorable prospects for jobs in the coming year, up from 34% in the fourth quarter of 2016, reflecting a positive outlook.

• Three out of five Africa / Middle East markets showed consumer confidence gains. KSA (98) posted a consumer confidence increase of four points. Conversely, consumer confidence fell sharply in Morocco (77), declining eight points in the second quarter of 2017. In the wider Africa / Middle East region, countries that posted scores at or above the optimism baseline of 100 include United Arab Emirates (110) and Pakistan (102).

Global highlights:

• Global consumer confidence increased three points from the fourth quarter of 2016 to a score of 104.

• Second-quarter confidence scores increased from the fourth quarter of 2016 in 41 of the 63 markets measured in the online survey.

• Confidence gains were seen throughout most measured markets in Asia-Pacific, Europe and Latin America. Meanwhile, confidence decreased in two of five Africa / Middle East markets and in one of two North American markets.

• Consumer confidence in North America remained higher than any other region globally, with an index of 117.

• Confidence in Europe continued on an upward trajectory for the ninth consecutive quarter, as 22 of 33 countries posted index increases, resulting in a regional score of 85.

• Confidence in the Asia-Pacific region strengthened modestly, rising three points to 114.

• In Latin America, confidence was stable at 85, showing a one-point increase from the fourth quarter of 2016.

• Africa / Middle East saw the greatest change in confidence levels, with the index rising five points to a score of 88.

Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. — SG