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28 March 2024

UAE consumers among the world's most bullish

Published
By Vicky Kapur

A positive perception of their finances helped UAE consumers remain among the most optimistic in the world, according to a new report.

The latest Nielsen Global Survey of Consumer Confidence and Spending Intentions shows that consumer confidence in the UAE remained at an optimistic, above-the-baseline score of 104.

This compares favourably with a global average of 98 points.

“UAE consumer confidence score, at the current level, is amongst the top ten countries globally. Moreover sales of the retail fast-moving consumer goods, as measured by Nielsen, are also showing growth,” said Arslan Ashraf, managing director, Nielsen Arabian Peninsula and Pakistan.

The Nielsen consumer confidence index measures perceptions of local job prospects, personal finances and immediate spending intentions.

The UAE score for the first quarter of 2016, however, declined four-points from the previous quarter, which Ashraf attributed to the low global oil prices. “The decline in oil prices is likely taking a toll on consumer sentiment in the UAE, which has dropped to the lowest level in six years,” he said.

Read: UAE residents 4th bullish in the world https://www.emirates247.com/news/emirates/uae-residents-4th-bullish-in-the-world-2015-01-26-1.578132

Nevertheless, Ashraf said that in spite of depressed consumer sentiments prevailing since last year, “UAE consumers are still upbeat about economic outlook on the long-term horizon”.

Interestingly, confidence in neighbouring KSA reported a consumer confidence decline of two points, matching the UAE score.

Global Consumer Confidence: A tale of diverse trends

Indian consumers remained the most bullish in the world for the fourth consecutive quarter, with an index score of 134.

In the world’s largest economy, the US consumer confidence score of 110 remained at or above the optimism baseline for nine consecutive quarters.

In Europe, confidence declined four points in the UK (97) and one point in Germany (97) from the previous quarter, as the outlook for jobs in the next 12 months worsened in both countries. In France, confidence declined 10 points to 64, and in Italy, it declined two points to 59.

Indians’ bullishness (134) was followed by consumers in the Philippines (119) and Indonesia (117). Vietnam (109) is another positive story among emerging markets in the region, as consistently high consumer confidence scores continued to edge up by two and one percentage, respectively, in the first quarter.

In China, consumer confidence edged down two points to 105. Confidence also declined 11 points in Hong Kong (88) and six points in Japan (73).

In Brazil, consumer confidence declined two points in the first quarter to the country's lowest score (74) in Nielsen's 11-year consumer-confidence history. Confidence also fell sharply in Argentina (75) and Colombia (83), declining 13 points and 11 points, respectively, from the previous quarter.

Confidence also declined seven points in South Africa to 75 – a new low for the country in Nielsen's 11-year consumer-confidence history.