Kingdom
HCP: Household Confidence Improves in the Fourth Quarter of 2025
The household confidence index (HCI) continued its recovery in the fourth quarter of 2025, reaching 57.6 points, compared to 46.5 points a year earlier. This improvement reflects a slight uptick in household optimism, despite a still negative perception of the standard of living.
The household confidence index reached 57.6 points in the fourth quarter of 2025, compared to 46.5 points a year earlier, according to the HCP. Confidence has improved compared to the previous quarter, but remains fragile.
Nearly 78% of households report a deterioration in their standard of living over the past twelve months, compared to 5% reporting an improvement. For the coming year, nearly half anticipate a further deterioration, 40.7% anticipate stability, and 9.9% anticipate an improvement.
More than 65% of households expect a rise in unemployment, despite an improvement compared to 2024. Consumption remains cautious, with two-thirds of households considering it an inopportune time to purchase durable goods.
Regarding their financial situation, 58.4% believe their income covers their expenses, 39.2% resort to borrowing or dipping into their savings, and only 2.4% are able to save.
Overall, confidence is progressing, but households remain cautious in an economic context that is still fragile.
