Survey Overview
Recent findings from the ongoing household survey conducted by the High Commission for Planning (HCP) indicate a marked improvement in the Household Confidence Index (ICM) for the fourth quarter of 2025. This improvement is evident both in comparison to the previous quarter and the same period in 2024.
Perceptions of Living Standards
In Q4 2025, 77.8% of households reported a deterioration in their living standards over the past year, a significant decrease from 5.3% who felt the same way. Although the balance of opinion remains negative, it has improved to -72.5 points, up from -72.9 points in the previous quarter and -76.2 points year-on-year.
Future Expectations
Looking ahead, 49.4% of respondents anticipate a decline in their living standards over the next twelve months, while 40.7% expect stability and 9.9% foresee an improvement.
Unemployment Concerns
The survey also highlighted that 65.2% of households expect an increase in unemployment over the next year, compared to 17.5% who do not share this concern. The balance for this indicator improved to -47.7 points, a notable enhancement from -56.4 points in the previous quarter and -77.2 points a year earlier.
Consumer Spending Sentiment
In terms of consumer behavior, 67.1% of households believe that the current time is not suitable for purchasing durable goods, with the balance for this indicator at -52.9 points, showing improvement from -57.7 points in Q3 2025 and -71.9 points in Q4 2024.
Financial Stability Insights
The report further reveals that 58.4% of households feel their incomes adequately cover their expenses in Q4 2025. Conversely, 39.2% reported resorting to debt or depleting savings, while only 2.4% indicated they are able to save a portion of their income.
Current Financial Situation
The balance of opinion regarding the current financial situation of households remains negative at -36.6 points, slightly better than -36.4 points in the previous quarter and -38.9 points a year ago.
Financial Outlook
When assessing their financial situation over the past year, 48.6% of households believe it has worsened, while only 5.1% feel it has improved. Looking forward, 16.4% expect their financial situation to improve in the next twelve months, compared to 20.6% who do not.
ICM Calculation Methodology
The Household Confidence Index is derived from seven indicators: past living standard changes, future living standard expectations, unemployment outlook, purchasing opportunities for durable goods, current financial situation, past financial situation, and future financial outlook.
