Consumer confidence in the UAE was among the highest in the world during the second quarter of 2016 as sentiment improved, according to the latest Nielsen Consumer Confidence Index.
The UAE was ranked sixth globally with a score of 109 points, up five points compared to the previous quarter. Saudi Arabia was also in the world's top 10 with a score of 104, the same as Q1, compared to a global average of 98.
While 48 percent still believe the UAE economy is going through a recession, that figure represented a drop of 9 percent compared to Q1, Nielsen said.
Job prospects sentiment improved by nine points (60 percent favourable), while personal finance sentiment improved by six points (68 percent favourable).
Globally, the Philippines, India and Indonesia recorded the highest levels of consumer confidence as average levels held steady in the second quarter at 98.
North America was the only region to sustain growth momentum in the second quarter, demonstrating a three-point increase in confidence to 111. All other regions remained essentially in a holding pattern, with relatively stable quarter-on-quarter index levels.
“Global economic growth continues to be sluggish, with wide variation in growth rates,” said Louise Keely, senior vice president, Nielsen, and president, The Demand Institute. “Economic concerns such as weak commodity prices and job prospects, and political concerns, such as terrorism and political stability, have been higher among consumers in countries directly affected by situations such as terrorist attacks and soft commodity demand.”
A year ago, only 12 markets out of 61 covered in the survey reached the optimism benchmark of 100 — a number that was unchanged in the most recent second-quarter results.
In the latest online survey, conducted May 9-27, consumer confidence increased in just over half (56 percent) of measured markets.
The Nielsen Consumer Confidence Index measures perceptions of local job prospects, personal finances and immediate spending intentions.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.