As the year ends, the Jordanian Consumer Sentiment Index (JCSI) is up by almost 5 points approaching its levels at the beginning of the pandemic in Q1’2020. The uptake in the consumer sentiment index has been primarily driven by increased positivity towards the future of the economy, with the Economic Expectations Index experiencing a 7.5-point increase when compared to the last quarter.
These subsiding negative sentiments towards a more stable future have been in part driven by several governmental relief measures that aim to preserve the livelihoods of those most affected by the lockdown measures imposed. Increasing the Minimum Wage, Extension of the NAF support program, supporting and extending the SSC relief packages, and alleviation of permitted salary reduction under The Defense Order number (6), have all participated in reassuring Jordanians of an upcoming partial recovery and better purchase power. Noteworthy, these improved future sentiments were significantly higher among public sector employees vs. much lower levels among the private sector.
However, as consumers continue to grapple with the aftermath of the crisis on their livelihoods, unemployment ranks first on consumers' list of worries. In fact, in comparison to other indices, the employment confidence index remained stagnant, placing Jordan amongst the bottom three countries when it comes to this index.
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.