6 months into the pandemic and Jordanians are still far from dealing with the lockdown fatigue experienced at the beginning of the year. The complete reopening of the economy during the third quarter has brought slight financial relief to households, particularly driven by young workers. However, the deteriorating economic impact of the previous months still outweighed any optimism felt this quarter. In fact, in light of the recent spike in the number of cases, optimism that the crisis will be short-lived dwindled, and people have become more concerned about the powerful threat posed by the virus. Even on a global level, most countries have shared more negative sentiments compared to the previous quarter, with around half of the countries included in the survey exhibiting more negativity towards the general economic situation in their respective countries.
As lower employment rates and salary cuts affected most Jordanian livelihoods, consumers were unable to spend on anything apart from their day-to-day necessities. In fact, 9 in 10 were unable to invest in their future and 4 in 5 were unable to spend on big purchases. This has led to a stagnation in the Jordanian Consumer Sentiment Index (JCSI)– the second index this year to reach a record low.
Ipsos’ JCSI quarterly result is driven by the aggregation of four weighted sub-indices relating to current personal financial conditions, economic expectations, investment climate, and employment confidence, all of which contribute to JCSI being a key predictor of general consumption & investment trends in the Jordanian market.