Approaching Summer Holidays and Travel Preparations Divert Consumers from Durable Goods’ Purchases

ARA Research & Consultancy released its Consumer Confidence Index for Kuwait for May 2025, sponsored by Lexus.

The ARA General Index recorded 114 points, decreasing by 3 points in May. The decrease was observed among Kuwaitis, while the index increased among Arab residents. All sub-indexes that make up the General Index recorded slight decreases, except for the Expected Personal Income Index, which increased by 1 point. With that, the high levels recorded by the various indexes in April were corrected in May, returning to the average levels seen since January 2024.

It is worth noting that this survey was conducted before Eid Al-Adha, that is, prior to the Israeli strike on Iranian territory on the morning of June 13.

Stability in the Economic Situation Indexes

The Current Economic Situation Index recorded 109 points, decreasing by 1 point in May. The index decreased significantly among Kuwaitis by 11 points, while it increased by 7 points among Arab residents.

Similarly, the Expected Economic Situation Index decreased by 4 points, recording 115 points, and moved away from the record levels of above 120 points achieved during several months in 2024 and early 2025. The index decreased by 8 points among Kuwaitis, while it increased by 1 point among Arab residents.

Among the supporting factors contributing to the stability of economic indexes, despite the drop in oil prices to USD 64 during May (a 19.7 % decrease compared to the previous fiscal year’s price), the following can be highlighted:

A - Infrastructure contracts underway, such as roads and the airport expansion, which amounted to USD 15.6 billion in 2024 according to MEED magazine.
B - The International Monetary Fund's projection for Kuwait to achieve a 1.9 % growth this year.
C - Despite challenges, the Kuwait Stock Exchange recorded the best performance in the GCC during the first four months of the year.
D - The real estate sector saw significant progress in construction activity, with a strong focus on this sector’s development, proposing expansion of buildable areas, and facilitating access to residential homes for citizens.

Stability in the Personal Income Indexes

The Current Personal Income Index maintained its high levels, despite decreasing by 1 point to 111 points at the end of May. The index decreased by 4 points among Kuwaitis and increased by 1 point among Arab residents, remaining at high levels not seen since mid-2022.

The Expected Personal Income Index continued to boost its high levels, reaching 113 points with a 1-point increase at the end of May. The index decreased by 2 points among Kuwaitis and increased by 2 points among Arab residents.

Fluctuation in the Employment Opportunities Index

The Current Employment Opportunities Index recorded 141 points, decreasing by 4 points at the end of May. Notably, the index declined among Kuwaitis, while it increased by an equal proportion among Arab residents. This index continues to fluctuate around the 150-point level, which it has surpassed in several months of both the current and previous years.

The Purchase Index Loses its Gains

The Purchase of Durable Goods Index lost all the gains it achieved with the surge recorded in April. It decreased by 21 points, reaching 105 points at the end of May. It was the only index that decreased among both Kuwaitis and Arab residents. The approaching Eid Al-Adha holiday before conducting the study and the preparations for summer travel may have led families to hold off on purchasing durable goods.

LEXUS SETS NEW GLOBAL SALES RECORD AND

DRIVES ELECTRIC VEHICLE INNOVATION

Lexus reaffirmed its strategic focus on the battery electric vehicle technology with the world premiere of its new RZ luxury electric SUV in Brussels. Lexus revealed that this model will introduce both a steer by wire system and Interactive Manual Drive, a software-based system which replicates the experience of manual gear shifting.

Rapid Growth Through Electrified Powertrain Strategy

The RZ will be one of three new BEVs Lexus will launch in the next 12 months. These announcements were made against the backdrop of record sales achievements and rapid growth in customer demand for Lexus’ battery electric and plug-in hybrid models.

This robust global growth was further supported by the brand’s outstanding performance in Europe, where sales rose by up to 20% to over 88,000 units, capturing a 2.5% market share—Lexus’ largest ever in the region. The sales momentum has carried out in 2025, with the first two months showing a continued increase of more than 20%.

The new Lexus RZ Reveal in Europe

The new Lexus RZ advances EV innovation with several key features. It introduces Lexus’ first steer-by-wire system for smooth, intuitive control, and debuts the Interactive Manual Drive in the RZ 550e F SPORT, providing a mechanical-like paddle shifting experience. Enhancements to the DIRECT4 all-wheel drive system allow for more balanced power distribution, boosting stability and traction.