primary consumer sentiment index€¦ · ipsos saudi arabia’s primary consumer sentiment index...
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1World Worries | March 2017 | Version 1 | Public
Primary Consumer Sentiment Index Saudi Arabia, September 2020
Introducing the Primary Consumer Sentiment Index
Ipsos Saudi Arabia’s Primary Consumer Sentiment Index (PCSI), isa national survey of consumer attitudes on the current and futurestate of the local economy, personal financial situation, as well asconfidence to make large investments and ability to save.
Consumer sentiment is a key predictor of purchase trends in themarket. Despite it being a lagging indicator, if consumerconfidence is high, people will make more purchases and theeconomy will expand.
Businesses and Policy Makers can monitor changes in the index tofactor the data in their decision-making processes. A wave-on-wave decreasing trend suggests consumers have a negativeoutlook on their ability to spend. Thus, manufacturers may expectconsumers to avoid retail purchases, particularly items thatrequire financing. Likewise, banks can anticipate a decrease inlending activity, mortgage applications, and credit card usage.
Introducing the Primary Consumer Sentiment Index
The PCSI result is driven by the aggregation of
four, weighted, sub-Indices
Overall Primary Consumer
Sentiment Index
PCSI Employment Confidence
PCSI Economic Expectations
PCSI Investment Climate
PCSI Current Personal Financial Conditions
1. Rate the current state of the economy in your local area using a scale from 1 to 7, where 7 means a very strong economy today and 1 means a very weak economy.
2. Looking ahead six months from now, do you expect the economy in your local area to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?
3. Rate your current financial situation, using a scale from 1 to 7, where 7 means your personal financial situation is very strong today and 1 means it is very weak.
4. Looking ahead six months from now, do you expect your personal financial situation to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?
5. Compared to 6 months ago, are you NOW more or less comfortable making a major purchase, like a home or car?6. Compared to 6 months ago, are you NOW more or less comfortable making other household purchases?7. Compared to 6 months ago, are you NOW more or less confident about job security for yourself, your family and other people you know
personally?8. Compared to 6 months ago, are you NOW more or less confident of your ability to invest in the future, including your ability to save
money for your retirement or your children’s education?9. Thinking of the last 6 months, have you, someone in your family or someone else you know personally lost their job as a result of
economic conditions?10. Now look ahead at the next six months. How likely is it that you, someone in your family or someone else you know personally will lose
their job in the next six months as a result of economic conditions?
Overall Primary Consumer Sentiment Index
Primary Consumer Sentiment IndexSeptember 2020 Summary
PCSI SUMMARY: SEPTEMBER 2020
Q. Generally speaking, would you say
things in this country are heading in the
right direction, or are they off on the
wrong track?
80%
20%
PCSI, September 2020
57.3Versus Previous Wave;
August, 2020
58.0
Q: Rate the current state of theeconomy in your local area using a scalefrom 1 to 7, where 7 means a verystrong economy today and 1 means avery weak economy.
44%
52%
4%
Q: Rate your current financial situation,using a scale from 1 to 7, where 7means your personal financial situationis very strong today and 1 means it isvery weak.
19%
66%
15%
54.%
41.%
35.%
18.%
15.%
Covid-19
Taxes
Unemployment andjobs
Poverty and SocialInequality
Corruption
Right Direction /Wrong Track
Country EconomicSituation
Personal FinancialSituation
Top 5 Concerns for Consumers in Saudi Arabia
Right Direction
Wrong Track
Strong (T2B)
Neither Strong Nor Weak
Weak (B2B)
Strong (T2B)
Neither Strong Nor Weak
Weak (B2B)
Country’s General Situation
SAUDI ARABIA: RIGHT DIRECTION/WRONG TRACK
Trending
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Right Direction Wrong Track
80%
20%
Q. Generally speaking, would you say things in this country are heading in the right direction, or are they off on the wrong track?
-4%
5%
2%
-2%
-1%
1%
-5%
4%
-4%
6%
0%
-1%
-8%
-1%
4%
-4%
-8%
-6%
2%
-1%
8%
-5%
-2%
SAUDI ARABIA: RIGHT DIRECTION/WRONG TRACKGlobal Comparison
95%
80%
62%
56%
49%
47%
44%
44%
39%
37%
36%
35%
35%
35%
32%
32%
31%
28%
28%
27%
26%
22%
14%
5%
20%
38%
44%
51%
53%
56%
56%
61%
63%
64%
65%
65%
65%
68%
68%
69%
72%
72%
73%
74%
78%
86%
China
Saudi Arabia
India
Australia
Canada
South Korea
Germany
Russia
Japan
Mexico
Turkey
Argentina
Great Britain
Brazil
Sweden
Hungary
Poland
Italy
The US
France
Spain
Belgium
South Africa
Right Direction Wrong Track
Q. Generally speaking, would you say things in this country are heading in the right direction, or are they off on the wrong track?% change compared
with previous month; August 2020
Covid-19 2%
Taxes -1%
Unemployment and jobs 1%
Poverty and social inequality 0%
Corruption -2%
Education 0%
Crime and violence 4%
Moral decline 1%
Climate Change 2%
Healthcare -2%
Terrorism -6%
Childhood Obesity -3%
Threats Against The Economy 2%
Inflation 0%
Access To Credit -2%
Immigration Control -2%
Maintaining Social Relations -4%
Q: Which three of the following topics do you find the most worrying in Saudi Arabia?
WHAT CONCERNS SAUDI ARABIA
Concerns for Consumers in Saudi Arabia
54%
41%
35%
18%
15%
14%
12%
12%
11%
10%
9%
7%
6%
6%
2%
1%
1%
% change compared with previous month;
August 2020
Personal Financial Situation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Strong Neither Strong Nor Weak Weak
Q: Rate your current financial situation, using a scale from 1 to 7, where 7 means your personal financial situation is very strong today and 1means it is very weak.
CURRENT PERSONAL FINANCIAL SITUATION
Trending
19%
66%
15%
30%
26%
23%
22%
19%
18%
18%
17%
11%
10%
10%
10%
9%
8%
8%
8%
8%
7%
5%
5%
5%
4%
3%
Sweden
China
US
Great Britain
Saudi Arabia
Canada
India
Australia
Germany
Brazil
Turkey
Belgium
Spain
France
Hungary
Poland
Mexico
Italy
Russia
Argentina
South Korea
South Africa
Japan
CURRENT PERSONAL FINANCIAL SITUATION
% Strong
Global Comparison
Q. Looking ahead six months from now, do you expect your personal financial situation to be much stronger, somewhat stronger, about thesame, somewhat weaker, or much weaker that it is now?
FUTURE PERSONAL FINANCIAL SITUATION
Trending
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Strong Neither Strong Nor Weak Weak
51%
33%
16%
Saudi Arabia’s Economic Situation
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Strong Neither Strong Nor Weak Weak
Q: Rate the current state of the economy in your local area using a scale from 1 to 7, where 7 means a very strong economy today and 1means a very weak economy.
CURRENT STATE OF THE ECONOMY
Trending
44%
52%
4%
44%
37%
16%
15%
15%
15%
10%
9%
9%
7%
7%
6%
6%
6%
5%
4%
3%
3%
3%
3%
3%
3%
3%
1%
Saudi Arabia
China
Israel
Sweden
India
Turkey
US
Brazil
Germany
Australia
Poland
Canada
Mexico
Hungary
Russia
Great Britain
Italy
France
Spain
South Korea
Belgium
Argentina
South Africa
Japan
CURRENT STATE OF THE ECONOMYGlobal Comparison
% Strong
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Strong Neither Strong Nor Weak Weak
Q: Looking ahead six months from now, do you expect the economy in your local area to be stronger, about the same or weaker than it isnow?
FUTURE STATE OF THE ECONOMY
Trending
65%
23%
12%
Employment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%More Confident Less Confident
Q. Compared to 6 months ago, are you now more or less confident about job security for yourself, your family and other people you knowpersonally?
JOB SECURITY
Trending
55%
45%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Yes No
Q. Thinking about the last 6 months, have you, someone in your family or someone else you know personally lost their job as a result ofeconomic conditions?
JOB LOSSES IN THE PAST SIX MONTHS
Trending
64%
36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Likely Unlikely
Q. Looking ahead at the next six months, how likely is it that you, someone in your family or someone else you know personally will lose theirjob in the next six months as a result of economic conditions?
JOB LOSSES IN THE NEXT SIX MONTHS
Trending
34%
66%
Investment Climate
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%More Comfortable Less Comfortable
Q. Compared to 6 months ago, are you NOW more or less comfortable about your ability to invest in the future, including your ability to savemoney for your retirement and your children’s education?
ABILITY TO INVEST IN THE FUTURE
Trending
56%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%More Comfortable Less Comfortable
Q. Compared to 6 months ago, are you now more or less comfortable making a major purchase, like a home or car?
ABILITY TO MAKE A MAJOR PURCHASE
Trending
62%
38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%More Comfortable Less Comfortable
Q. Compared to 6 months ago, are you now more or less comfortable making other household purchases?
BUYING HOUSEHOLD DURABLES
Trending
65%
35%
PCSI Deep Dive
OVERALL PCSI
Saudi Arabia Global Comparison
59.3
0
10
20
30
40
50
60
70
80
90
100
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
0
10
20
30
40
50
60
70
80
90
100
Ch
ina
Sau
di A
rab
ia
Swed
en
Ger
man
y
US
Ind
ia
Gre
at B
rita
in
Can
ada
Au
stra
lia
Bra
zil
Fran
ce
Be
lgiu
m
Po
lan
d
Hu
nga
ry
Ital
y
Mex
ico
Ru
ssia
Jap
an
Arg
enti
na
Sou
th K
ore
a
Spai
n
Turk
ey
Sou
th A
fric
a
57.3
Avg. 42.1
Avg. 62.3
57.3
PCSI PERSONAL FINANCIAL CONDITIONS
1. Compared to 6 months ago, are you NOWmore or less comfortable making a majorpurchase, like a home or car?
2. Compared to 6 months ago, are you NOWmore or less comfortable making otherhousehold purchases?
3. Compared to 6 months ago, are you NOWmore or less confident about job security foryourself, your family and other people youknow personally?
4. Compared to 6 months ago, are you NOWmore or less confident of your ability to investin the future, including your ability to savemoney for your retirement or your children’seducation?
5. Rate your current financial situation, using ascale from 1 to 7, where 7 means yourpersonal financial situation is very strongtoday and 1 means it is very weak.
6. Rate the current state of the economy in yourlocal area using a scale from 1 to 7, where 7means a very strong economy today and 1means a very weak economy.
Saudi Arabia
57.8
0102030405060708090
100
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
Global Comparison
0
10
20
30
40
50
60
70
80
90
100
Ch
ina
Sau
di A
rab
ia
Swed
en US
Ger
man
y
Ind
ia
Can
ada
Gre
at B
rita
in
Au
stra
lia
Bra
zil
Be
lgiu
m
Fran
ce
Ru
ssia
Po
lan
d
Hu
nga
ry
Mex
ico
Isra
el
Ital
y
Turk
ey
Sou
th A
fric
a
Spai
n
Arg
enti
na
Sou
th K
ore
a
Jap
an
Avg. 62.7
Avg. 34.1
58.0
58.0
1. Now look ahead at the next six months. Howlikely is it that you, someone in your family orsomeone else you know personally will losetheir job in the next six months as a result ofeconomic conditions?
2. Looking ahead six months from now, do youexpect the economy in your local area to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?
3. Looking ahead six months from now, do youexpect your personal financial situation to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?
PCSI ECONOMIC EXPECTATIONS
64.2
0102030405060708090
100
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
Global Comparison
0
10
20
30
40
50
60
70
80
90
100
Ch
ina
Sau
di A
rab
ia US
Bra
zil
Ind
ia
Swed
en
Ger
man
y
Can
ada
Mex
ico
Au
stra
lia
Gre
at B
rita
in
Arg
enti
na
Ital
y
Hu
nga
ry
Ru
ssia
Po
lan
d
Fran
ce
Spai
n
Jap
an
Sou
th A
fric
a
Be
lgiu
m
Sou
th K
ore
a
Turk
ey
Avg. 67.3
Avg. 52.9
64.9
Saudi Arabia
64.9
58.9
0102030405060708090
100
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
1. Compared to 6 months ago, are you NOWmore or less comfortable making a majorpurchase, like a home or car?
2. Compared to 6 months ago, are you NOWmore or less comfortable making otherhousehold purchases?
3. Compared to 6 months ago, are you NOWmore or less confident of your ability to investin the future, including your ability to savemoney for your retirement or your children’seducation?
4. Rate your current financial situation, using ascale from 1 to 7, where 7 means yourpersonal financial situation is very strongtoday and 1 means it is very weak.
5. Looking ahead six months from now, do youexpect your personal financial situation to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?
PCSI INVESTMENT CLIMATE
Global Comparison
0
10
20
30
40
50
60
70
80
90
100
Ch
ina
Sau
di A
rab
ia
Swed
en
Ind
ia US
Bra
zil
Gre
at B
rita
in
Ger
man
y
Au
stra
lia
Can
ada
Mex
ico
Fran
ce
Be
lgiu
m
Hu
nga
ry
Sou
th A
fric
a
Ru
ssia
Po
lan
d
Arg
enti
na
Ital
y
Spai
n
Turk
ey
Sou
th K
ore
a
Jap
an
Avg. 63.2
Avg. 36.1
59.2
Saudi Arabia
59.2
53.4
0102030405060708090
100
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Jan
-20
Feb
-20
Mar
-20
Ap
r-2
0
May
-20
Jun
-20
Jul-
20
Au
g-2
0
Sep
-20
1. Compared to 6 months ago, are you nowmore or less confident about job security foryourself, your family and other people youknow personally?
2. Thinking about the last 6 months, have you,someone in your family or someone else youknow personally lost their job as a result ofeconomic conditions?
3. Now look ahead at the next six months. Howlikely is it that you, someone in your family orsomeone else you know personally will losetheir job in the next six months as a result ofeconomic conditions?
PCSI EMPLOYMENT CONFIDENCE
Global Comparison
0
10
20
30
40
50
60
70
80
90
100
Ger
man
y
Swed
en
Ch
ina
Jap
an US
Fran
ce
Gre
at B
rita
in
Can
ada
Be
lgiu
m
Po
lan
d
Sou
th K
ore
a
Ital
y
Au
stra
lia
Sau
di A
rab
ia
Hu
nga
ry
Ind
ia
Ru
ssia
Spai
n
Arg
enti
na
Turk
ey
Bra
zil
Mex
ico
Sou
th A
fric
a
Avg. 52.7
Avg. 47.9
45.5
Saudi Arabia
45.5
Methodology
• Methodology – Self Administered Online Interviews
• Sample Size – 500 Respondents
• Age – 15 years old and above
• Sample Criteria – General Public
The PCSI Index is calculated by utilizing data from the survey results.Responses are divided into aggregated Top Box (Reward) numbers andBottom Box (Penalty) numbers. Using Shapely Value Analysis, valueswere generated for the penalty and reward for each question. Themagnitude of each question is the difference between the reward andpenalty. An Importance factor, which the ultimate weight of theparticular question in the index, is the magnitude of each questiondivided by the total magnitude of all questions. A Top Box Weight foreach question is calculated by dividing the Reward by the magnitude ofeach question. Similarly, the Bottom Weight for each question iscalculated by dividing the Penalty for each question by magnitude of thesame. The Index Value for each question is calculated by using theformula: Importance x (Top Box Wt * Top Box %) - (Bottom Box Wt *Bottom box %).
For more information, please contact:
Nicola Qahoush
Research Manager – Ipsos MENA
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Chief Client Officer – Ipsos MENA