The UAE still maintains last quarter's inclusion amongst the top 10 most optimistic nations, according to the latest edition of the Nielsen Global Consumer Confidence Index.
However, the UAE's Consumer Confidence index has shown a slight drop of two points, bringing the index from 103 points in the first quarter of 2010 to 101 in the second quarter.
The number of consumers that perceive the UAE to be in a recession has dropped three points since the last quarter, with 42 per cent of those surveyed believing the recession will be over in next 12 months.
The survey also revealed that about 76 per cent of the nation's consumers have changed their spending habits to save on household expenses, even though 64 per cent of consumers surveyed said that their state of personal finance is excellent or good for the next 12 months.
"In the UAE, consumers are still focused on repairing their household balance sheets with 50 per cent allotting any remaining income (once they have covered their essential living expenses) to savings and paying off debt (34 per cent), and focusing on cutting down their car and out of home entertainment expenses," said Sevil Ermin, Managing Director, UAE, The Nielsen Company.
"However, since the starting of the summer months, UAE consumers appear set to take that much needed vacation this quarter," she added.
Globally, concerns about the economy and job security remain consumers' top concerns in Q2 of 2010. In the UAE, 17 per cent consumers cite job security as a main life concern but this number has decreased since last quarter which previously stood at 20 percent.
More than half (58 per cent) of consumer believe that the job prospects in the UAE over the next 12 months will be excellent or good.
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