ABU DHABI, 30th October, 2016 (WAM) — The results of the General Index for Consumer Confidence in Abu Dhabi’s economic performance showed higher optimism levels among consumers regarding the economic conditions during Q2 of 2016.
According to Abu Dhabi Department of Economic Development (ADDED) and Statistics centre ? Abu Dhabi (SCAD), the General Index for Consumer Confidence in Abu Dhabi’s economic performance recorded 122 points on average during Q2 of 2106, increasing by approximately 7 points, when compared to its level during Q1 of 2016.
This further reflects consumers’ confidence in Abu Dhabi’s economic capabilities to accommodate the current economic challenges and endure their pressures, thanks to the economy’s potentials and capabilities.
”The results of confidence index in Abu Dhabi’s economic performance show higher confidence and optimism among consumers vis-a-vis the current and future economic conditions at Abu Dhabi. This is due to the remarkable improvement in consumers’ confidence as to the actions and measures adopted within the framework of the current economic policies, as well as higher optimism in the future expectations,” said Khalifa bin Salem Al Mansouri, Acting Undersecretary of ADDED.
Al Mansouri added that this reflects the consumers’ confidence in Abu Dhabi’s economic capabilities together with the ability to adapt to the economic challenges resulting from the unfavourable developments in the global economy, the difficulties faced by the main developed and emerging economies particularly the commodity exporting countries, including oil, due to fluctuation of their prices in the global markets.
He stated that during Q2 of 2016 the index was driven by its sub-indices, namely, the Index of Confidence in the Policies. It is concerned with the consumers’ perspective of the economic policies related to the consumer and the Future Expectation Index. In Q2 of 2016, the value of the two indexes went up compared to their levels in Q1 of 2016. The positive impact of these two indexes removed the negative impact of lower Individual Financial Conditions Index during Q2 of 2016.
He added that while the consumers evaluation of their financial and living conditions in Abu Dhabi has improved at the end of Q2 of 2016, it remained affected, during that quarter, by internal and external factors, including inflation and concerns related to unfavourable developments of the global economy, such as continuous fluctuations in oil markets, weak performance of emerging economies, particularly the main economies such as China, Russia, Brazil and other commodity exporting countries, together with the fluctuations in the global capital markets and their impact on national markets.
At Q2 of 2016, the Individual Financial Conditions Index has settled at the neutral level of 100 points in June. This indicates that the neutral evaluation made by individuals for their financial conditions was affected by the implications of internal and external factors, with the inflation rate of 2.7 percent in the first half of 2016, according to reports issued by SCAD.
Besides, there are the concerns associated with the global economic developments and their impact on the emirate’s economy. This has led to deterioration of consumers’ assessment for the Individual Financial Conditions Index in Q2 of 2016 as a whole. The index value declined below the level of neutrality in the said quarter, recording (98) points on average.
The Index of Confidence in the Policies, measuring consumers’ confidence in the government policies related to their living conditions, went up to 112 points during Q2 of 2016, on average during this quarter, increasing by 13 points, when compared to its level during Q1 of 2016.
The index value reflected a notable improvement in consumers’ confidence level as to the economic policies to sustain the living standards of Abu Dhabi citizens. It also reflected their positive perspective towards the government measures and procedures related to the consumer. Besides, the index reflected strong consumers’ confidence in Abu Dhabi’s economic capabilities, within the framework of the current economic policies in order to adapt to the challenges associated with the global economic developments.
The Future Expectation Index witnessed increased 157 points on average during Q2 of 2016, with 8 points difference compared to its level in Q1 of the same year. This reflects an increase in consumer level of optimism in Abu Dhabi concerning the future of the economic prospects.
The future outlook for consumers improved despite the fact that there are still continuous challenges related to the global economic developments together with their possible impact on Abu Dhabi’s economic conditions. This reflects the consumers’ confidence in Abu Dhabi’s economic capabilities, thanks to its economic components, enabling it to adapt to the current economic challenges related to these developments.
According to the consumers’ employment status, the trends of the General Index for Consumer Confidence during Q2 of 2016 reflect the continued optimism among consumers regardless of their employment status, as the average optimism level witnessed a rise, recording 124 points on average during the same quarter. However, the employed group was more optimistic than the unemployed group. The index of the latter group settled at 116 points on average, reflecting the employed consumers’ views towards the work and income opportunities, under the applicable economic policies, which become more optimistic compared to unemployed group’s views, in addition to their future expectations which was much more optimistic.
As for the labour sector, the General Index for Consumer Confidence showed the continuing optimism among the employed consumers across all sectors during the Q2 of 2016. The levels of optimism of the private sector employees have increased, as the index recorded about 126 points on average during the same quarter. However, the private sector employees were more optimistic than their peers in the government and joint sectors.
In regard to the nationality, the results of the General Index for Consumer Confidence showed continued level of optimism among individual consumers of all nationalities during the Q2 of 2016. The citizens showed higher levels of optimism comparing to others, as the general index of citizens recorded about 129 points, on average, during the same quarter, while the general index of non-citizens recorded about 120 points on average.
This reflects the progress of citizens in all sub-indexes, as their evaluation of their financial status was more positive comparing to others, in addition to their expectations which were more optimistic than non-citizens. The citizens also showed a higher level of confidence towards the economic policies related to the consumers.
According to the age group, Abu Dhabi’s General Index for Consumer Confidence shows the continuing optimism among the consumers from all age groups during the Q2 of 2016. The level of optimism was higher in the younger 18-30 year-old age group, as the index recorded around 131 points, on average, for the consumers of that age group, and 118 points for the consumers of the 30-50 year-old age group, and around 104 points for the 50+ age group.
The levels of optimism among the individual consumers witnessed sustainable improvements by the end of the Q2 of 2016, as the confidence of the consumers about the government economic policies remarkably in the Q2 of 2016, as the Confidence in the Policies Index raised by 1.6 percent in the mentioned quarter comparing to the same period in 2015 Future Conditions Index According to the consumers’ educational status, the Q2 of 2016 witnessed a continuing optimism among the consumers of different education levels. The consumers with basic education (literacy/low education) were more optimistic, as the average value of the General Index for Consumer Confidence for that group has reached 138 points. As for consumers with intermediate education and with university degrees and post-graduate degrees, the index also recorded around 126 and 122 points during Q2 of 2016, respectively.