Kuwait - Mubasher: The Kuwaiti consumer sector softened noticeably in recent months just as subsidy reforms took off, though household income growth and employment remained robust, said a recent report compiled by NBK Capital.

The report stated that the country's consumer confidence weakened notably at the end of the summer, while card spending shrank on a yearly basis. Meanwhile, employment among Kuwaitis continued to provide support to the sector, thanks to steady government hiring.

The report also stated that consumer spending came under pressure during the third quarter of 2016 as Credit and debit card point-of-sale spending growth slid into negative territory for the first time on record, as spending shrank by 0.7% on a yearly basis in the third quarter of 2016.

Meanwhile, NBK Capital said it expects Kuwait's consumer sector to continue to be soft into 2017, as consumers deal with further hikes in utility charges next year. While steady employment growth and modest gains in salaries in the government sector will continue to provide support to consumers, fiscal reforms will be a drag on the sector’s performance.