By Staff writer
Official figures show increase in confidence despite reports of growing job cuts as lower oil prices force slowdown
Consumer confidence in Abu Dhabi rose during the second quarter of 2016 despite reports of job cuts in the emirates's government, oil and gas, and financial services sectors as lower oil prices slow economic growth.
The General Index for Consumer Confidence showed higher optimism levels among consumers during Q2, up 7 points on the previous quarter, according to Abu Dhabi Department of Economic Development (ADDED) and Statistics Centre Abu Dhabi (SCAD).
Earlier this month, real estate consultancy JLL said the demand for residential property in Abu Dhabi declined due to the reducing population caused by a further wave of job cuts.
But the official figures hinted that Abu Dhabi's economic capabilities could "accommodate the current economic challenges and endure their pressures".
"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," said Khalifa bin Salem Al Mansouri, acting Undersecretary of ADDED in comments published by news agency WAM.
He said that while consumers' evaluation of their financial and living conditions in Abu Dhabi improved at the end of Q2, it remained affected by internal and external factors.
These included 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,.
During Q2, the individual financial conditions sub-index has settled at the neutral level of 100 points while the index of confidence in the policies, measuring consumers' confidence in the government policies related to their living conditions, rose to 112 points, up 13 points on Q1.
The future expectation index witnessed an increase to 157 points during Q2, up 8 points on the previous quarter.
Optimism over jobs also rose during the three months to the end of June. with private sector employees more optimistic than their peers in the government sector, the index also showed.