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Riyadh Chamber Prepares The Indicator for Consumers Trust Most of Riyadh's Residents Expect Good Performance of the National Economy During 2016

Tuesday 12 April 2016

​The Indicator Assists Businessmen to Specify their Commerce & Investment

      The Indicator of Consumer's Trust which was prepared by Riyadh Chamber , have shown that 67% of Riyadh residents expect that the cost of living will be higher in 2016 in comparison with last year . While over 30% think that it won't change . The indicator also shows that 44% of the population expect a raise of income this year more than inflation in comparison to last year .

 Diraya, Center for Studies & Information in Riyadh Chamber , which prepared the indicator by measuring a sample the represents different types of consumers in Riyadh . The indicator aims to observe and measure  orientation of the population in economic changes and their effects on people's  way of living . Also , the indicator paves the path for businessmen and women , investors and decision makers in private and public sectors to determine their investment orientation . In order to make effective decisions in all fields of economy .

The Indicator Clearly Affects the Directions of  Money  Markets and Decisions of Investors

The center also mentioned that the indicator aims to  recognize consumers view in Riyadh. In addition, to  their future expectations regarding the current and future  financial   and  economic  conditions : consumers purchase and investment ability , available employment opportunities . In addition , the indicator functions as a statistical tool to measure the change  within the indicator constantly , it also clarifies the direction and change of consumers orientation and expectations and that provides  quantitative indicators that help businessmen and decision makers to take the right decision .

The account of the indicator is based on four sub-indicators  each one represents 25% from the total of the indicator's value . The four indicators include : financial status for families , families income , employment status , economic state of the country.  Each sub-indicator 's standard number  is calculated  . 2015 indicator was deemed as a reference year due to the beginning of the indicator's  poll for consumers.

The indicator observed consumers  price assessment in 2015 . 73% from the total of the sample  that participated in the poll  viewed the prices as high, while 24% viewed them  as moderate . On the other hand 64% of the sample expected an  increase of expenditures on essentials  during 2016 . While 32% expect that expenditures won't change . However , 43% expected an increase in expenditures on luxuries , traveling and tourism in 2016 and that is  in comparison to 2015.

As for the question on the assessment  of the Saudi economy performance  , the results have shown that 47.8% of respondents  , viewed it as a good question . Most of the respondents are highly educated . Moreover, 40% viewed the performance of the Saudi economy as acceptable , while 12.9 viewed it as bad  . These views are deemed positive and tend to be stable in evaluating the performance of Saudi economy  in spite of political and economic turmoil  which affected other countries .

Furthermore , the expected performance of the Saudi economy in 2016 , results have shown that 43.8% expect that it will improve , while 35.7%  expect it won't change and approximately 20.6% expect the economy will get worse . These expectations  are deemed positive, optimistic  and tend to be stable regarding the Saudi economy performance .

As for  encouraging  the Saudi economy in 2015 to start businesses  , exchange stocks , financial assets and real-estate . The results have  shown that 25.3% viewed it encouraging  ,while 49.6%  think that the  performance of  economy  will not affect these types of decisions and 25.1% think it is not encouraging . This view is deemed stable in evaluating the encouragement of Saudi economy performance in 2015 to start businesses .

Moreover, the encouragement of economy performance to start businesses  , exchange stocks , financial assets and real-estate  , 27.5 viewed it encouraging ,while 47% expect the economy performance won't  affect these decisions . Also , 25.5 think it is not encouraging . This view is deemed stable in evaluating the encouragement of Saudi  economy performance in 2016 to start businesses.

The indicator showed that 42% are satisfied with their work . Most of whom are workers in private sectors  . While 48% accepted work and only 10% are dissatisfied with their work . As for the work environment , 40% expected improvements on the work environment during this year  , most of whom are workers in private sectors.  While 53.8% expected improvements on government services to facilitate nationals and contribute them in achieving sustainable economic and social development  during this year . Finally 38% expected there won't be any improvements on government services ,while 8% expected less quality in the services .