Geopolitical Factors Reduce Consumer Confidence in the State of Kuwait

As part of its commitment to monitoring and tracking consumer confidence trends in Kuwait, ARA Research & Consultancy issues its Consumer Confidence Index on a monthly basis, sponsored by Lexus.

This research is based on a sample of 500 respondents, reflecting the population distribution of Kuwaiti citizens and Arab residents.

The new year began with a decline in consumer confidence, as the ARA General Index recorded 108 points at the end of January, decreasing by 13 points compared to the end of the previous year and recording its lowest level since April 2024. This decline follows high confidence levels recorded by the General Index in 2025, which rarely fell below 110 points during the past two years.

The ARA General Index declined with similar rates among both citizens and Arab residents. The larger decline was observed among men, with a decrease of 19 points, compared to a drop of 4 points among women. All six sub-indexes composing the General Index also declined.

Largest Decline in Current Confidence Indexes

The Current Economic Situation Index declined by 14 points, recording 100 points at the end of January; its lowest level since November 2023. The index fell by 19 points among males and 11 points among females. It also declined by 11 points among Kuwaitis and 15 points among Arab residents.

Similarly, the Current Personal Income Index declined by 18 points, recording 98 points at the end of January; its lowest level since August 2024. The sharp decline among men was notable, amounting to 30 points, while the index increased by 4 points among women. Furthermore, the largest decline was among Arab residents, who lost 26 points, compared to 9 points drop among citizens.

Future Confidence Indexes Stronger Than Current Confidence Indicators

The Expected Economic Situation Index recorded 116 points in January, decreasing by 7 points compared to its closing level at the end of the previous year, and marking its lowest level since November 2023. Confidence in the future therefore remains robust, as the index is still within the range of levels recorded in 2025. The index declined by 11 points among citizens, while it remained stable among Arab residents. It declined by 9 points among men and remained unchanged among women.

Similarly, the Expected Personal Income Index recorded 110 points, decreasing by 6 points in January, a level close to those recorded in the first half of last year. The index declined at similar rates among men and women, by 5 and 6 points respectively, while it decreased by 8 points among citizens and 3 points among Arab residents.

Purchase Index Approaches the 100 Point Threshold

After recording major increases during the second half of last year, the Purchase of Durable Goods Index declined by 10 points, recording 104 points at the end of January. The decline was more pronounced among men, with 14 points, compared to 1 point among women. It decreased by 10 points among Arab residents, compared to 5 points drop among citizens.

Decline in the Employment Opportunities Index

After achieving high gains, the Employment Opportunities Index recorded a significant decline of 50 points, reaching 120 points in January. Although this index fluctuates within wide margins, it has not fallen to this level since March 2023. The largest decline occurred among Arab residents, with 79 points, compared to 32 points among citizens, and among men, with 74 points, compared to 10 points among women.

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