Consumer confidence drops in UAE - survey

Consumer confidence in the UAE is lower for the first half of 2009 compared to the previous six months, amid growing fears over job losses in the region.

According to the latest MasterCard Worldwide Index of Consumer Confidence, the UAE recorded the lowest score for employment since 2004.

While confidence is lower, overall results show that UAE consumers are still optimistic about income, the economy and quality of life in the six months ahead.

A total of 3,200 consumers were surveyed during October and November 2008 for the index which measures consumer confidence on prevailing expectation in the market for the next six months.

It is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.

In the UAE, the current consumer confidence score of 75.4, is a drop from the previous six months [85.4] and a year ago [78.5].

It is also below the market historical average [83.5].

However, the survey found that consumers remained optimistic especially about income [91.6], the economy [83.2] and quality of life [76.7].

Consumer outlook on employment [57.0] has dropped significantly from 95.8 a period ago and 85.6 a year ago - representing the lowest index for employment in the UAE since the beginning of the index in the first half of 2004.

The Index in the Middle East generally, which currently stands at 72.7 shows that consumers have in fact become a little more optimistic than six months ago [66.4] and slightly less so with the optimism of year ago [73.6].

Consumer confidence in Saudi Arabia [72.4], Qatar [76.2] remained fairly to very optimistic while Kuwait [96.6] hit a new high surpassing all previous records.

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