The UAE’s consumer confidence in second quarter reflects positive sentiments. The consumer confidence score reversed a four-point decline in the first quarter with a five-point increase to 109, making it highest in the Middle East and Africa region, reports Nielsen.
Job prospect sentiment improved nine percentage points (60% favourable), personal finance sentiment was brighter, improving six percentage points (68% favourable), while immediate spending intentions remain flat.
“Confidence in the UAE increased five index points in the second quarter after a four-point index decline at the start of the year amid an environment of volatile global oil prices,” says Arslan Ashraf, managing director, Nielsen Arabian Peninsula and Pakistan.
“The second quarter results showed that respondents were more confident about job prospects and personal finances than during the first quarter. But market dynamics have not changed significantly, and consumers were cautiously optimistic about spending intentions. They continue to be prudent with their expenses, especially when it comes to spending on new clothes, out-of-home entertainment and out-of-home dining,” he adds.
Consumer confidence stable in Middle East and Africa
In the six Middle East and Africa countries where the consumer confidence survey was conducted, confidence scores ranged from a high of 109 in the UAE to a low of 78 in South Africa (a three-point increase).
Scores have been relatively consistent in each country over the past three-to-four quarters. Confidence in Saudi Arabia and Pakistan remained at 104 each, unchanged from the first quarter. Egypt’s score of 81 increased three points from the first quarter, while Morocco’s score of 83 declined one point.
Global consumer confidence remained steady in the second quarter of 2016 at 98, an index score that was flat from the first quarter. North America was the only region to sustain growth momentum in the second quarter with a three-point confidence increase to 111.
- In North America, US consumer confidence maintained positive momentum in the second quarter, increasing three points to 113 from the previous quarter.
- In Asia-Pacific, confidence was relatively stable at 107, a one-point decrease from the first quarter.
- Japan’s confidence was of particular significance since it decreased four points to 69. It was Japan’s fourth consecutive quarter of declining scores, amid weak consumption and wage growth. Japan’s GDP has been on a declining trend since 1997 and is currently at 0.5%. Japan’s exports fell for the eighth consecutive month in May.
- China’s score increased one point to 106
- In Latin America, confidence remained at 78, unchanged from the first quarter.
- Brazil’s score was flat at 74.
- Peru’s score increased 11 points to 102.
- In Europe, Germany’s confidence decreased one point to 96. Meanwhile, Nordic countries and Eastern Europe showed confidence increases in the second quarter.
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. The second quarter online survey was conducted from May 9-27, 2016.