DUBAI/JEDDAH – The Kingdom's consumer confidence is high with an index of 102 in the first quarter of 2014, according to consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy. The KSA index represents a one-point increase from Q4 2013 and a six-point increase from one year ago (Q1 2013). “Overall, consumer sentiments are very much positive among Saudi respondents but facing plateauing optimism. Stability in high oil prices along with solid fiscal policies of the government – to gain economic growth through capital expenditure – are the main contributors for the strong consumer confidence in Saudi Arabia,” said Arslan Ashraf, managing director of Nielsen Arabian Peninsula. In Middle East-Africa region, the United Arab Emirates reported the highest consumer confidence scores (114), increasing four points form the fourth-quarter 2013. Confidence in Egypt increased most regionally, increasing 11 points in the first quarter to an index of 87. Pakistan increased two index points to 99, and South Africa posted the only regional confidence decline of four index points to 82. Regional consumer confidence was highest in Asia-Pacific with an index of 106, a one-point increase from the previous quarter (Q4 2013) and a three-point increase from a year ago (Q1 2013). North America posted the largest quarterly increase of five index points to reach the optimism baseline of 100—the highest level since 2007. The Middle East-Africa region increased four index points to 94, and Europe increased two index points to 75, compared to Q4 2013. Latin America reported the only quarterly regional consumer confidence decline of one index point to 93. The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30,000 respondents with Internet access in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism. In the latest round of the survey, conducted February 17 – March 7, 2014, consumer confidence increased 60 percent of markets measured by Nielsen — up from 43 percent the previous quarter (Q4 2013). On jobs outlook, more than half of KSA respondents (53%) believed the job market would be good or excellent in the upcoming year, a quarterly increase of one percentage point. In the Middle East-Africa region overall, however, positive perceptions about job prospects rose slightly: up 1 percentage point in the first quarter to 40 percent. More than half (56%) of Middle East- Africa respondents regarded their personal finances positively, a level that has increased in the last quarter. In KSA, respondents were more secure in money matters, with 62 percent believing the state of their finances was good or excellent. Almost three quarters of Middle East- Africa respondents (73%) said they felt the effects of recession in the first quarter, but the sentiment was an improvement compared with the previous quarter (75%). The recessionary sentiment in KSA holds steady at 67 percent. — SG
