Consumer Confidence Reaches Its Highest Level in 12 Years Driven by Confidence in the Economic Situation

ARA Research & Consultancy released its Consumer Confidence Index for Kuwait for August 2025, sponsored by Lexus.

The General Index recorded 121 points at the end of August, adding 3 points compared to its previous monthly score. This is its highest level in more than twelve years, specifically since May 2013.

Despite complex regional geopolitical conditions, wars, and risks in many areas, a closer look at the six indexes that compose the General Index and the factors that boosted confidence levels, reveals that the General Index increased equally among both citizens and residents; it increased among males, while it decreased among females.

While four of the indexes increased, both the Current Economic Situation Index decreased by 3 points among citizens, residents, males, and females, and the Purchase of Durable Goods Index decreased among Kuwaitis after recording high levels at the beginning of the summer. The other four indexes recorded increases of varying degrees. The highest increase was in the Employment Opportunities Index after a series of declines, followed by the Current Personal Income Index.

Divergence Between the Economic Situation Indexes

The Current Economic Situation Index recorded 111 points at the end of August, declining by 3 points compared to its previous level. This decrease corrected the significant increase recorded in June. The decline was recorded among citizens, residents, males, and females.

As for the Expected Economic Situation Index, it increased by 1 point, recording 125 points at the end of August, maintaining its elevated level above 120 points, which it rarely surpasses. The index decreased among females while it increased among males, ultimately maintaining its overall level.

It is worth noting that the difference in confidence between males and females is the highest in this index, amounting to 8 points, with females appearing more conservative about confidence in the expected economic situation compared to males.

Here we highlight several important decisions taken by the Kuwaiti government to address the rising deficit in the 2025–2026 fiscal budget, including:

1. Reducing the size of expenditures in the upcoming budget.
   
2. Gradually reducing dependence level on revenues of oil and its derivatives.
   
3. Outlining an economic plan extending from 2025 to 2035 that relies on investment in joint economic sectors, as well as long-term projects, and both domestic and foreign investments. An example of this is the long-term residential real estate projects approved for implementation.
   
4. Adopting a methodology aimed at developing the private sector, expanding its activities, and working to increase and diversify revenues. This in turn raises national income and diversifies its sources.
   

Current Personal Income Index Catches Up with Expected Income Levels

The Current Personal Income Index recorded 114 points at the end of August, adding 8 points to its previous balance. Thus, confidence in personal income has thus continued its upward trend since 2022. To note that the last time this index recorded a higher level was in March 2015 when it reached 115 points. The increase was recorded among citizens and residents, as well as males, while it decreased slightly among females.

With this result, the Current Personal Income Index caught up with the Expected Personal Income Index, as both recorded 114 points. It is notable that in past years, confidence in current personal income rarely surpassed expected levels. ARA analysts had previously pointed out, at the beginning of 2024, that the narrowing of the gap between the two was significant, as it indicated that consumer expectations in Kuwait have been accurate, with current income confidence catching up with expectations.

The Expected Personal Income Index increased by 2 points in August, mainly influenced by improved confidence among males, especially Kuwaitis.

Recovery in the Kuwaiti Real Estate Market

Reports from the Ministry of Justice – Real Estate Registration and Documentation Department – showed an increase in liquidity in the Kuwaiti real estate market during July 2025 compared to June.

Real estate trading in July amounted to approximately 442.7 million Kuwaiti dinars, achieving an increase of 25.2% compared to June, and 43.2% year on year compared to July 2024. This increase in real estate market liquidity stimulates activity in many sectors and jobs directly linked to the real estate and construction sector. Moreover, this real estate growth reflects a recovery in financial solvency.

Employment Opportunities Index Jumps to High Levels

The Employment Opportunities Index recorded 179 points at the end of August, increasing by 20 points within a month and achieving its highest level since October 2021. Confidence increased at higher rates among females (24 points compared to 16 points among males) and among Arab residents (34 points compared to 12 points among citizens).

Correction of the Purchase of Durable Goods Index

The Purchase of Durable Goods Index decreased by 4 points in August, recording 118 points. This comes after a jump of 15 points in June.

The decrease was notable among citizens, with a 13-point drop, while it increased by 9 points among Arab residents. Purchasing index also increased among males by 5 points, while it decreased by 15 points among females.

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