Emirate Consumer Confidence Index increased by 5 points

The index record of the consumer confidence in the economic performance of the Emirate of Abu Dhabi in the first quarter of this year increased by 5 points and recorded about 138 points on average as compared to 133 points in the fourth quarter of the previous year.

The finding came within the results of the economic performance report of the Emirate of Abu Dhabi for the first quarter of this year issued by the Studies Division of the Department of Economic Development – Abu Dhabi in collaboration with the Statistics Centre - Abu Dhabi, reflecting the ability of the economy of the Emirate to absorb the effects of concerns associated with the performance of the global economy in light of the instability of oil prices. It is noteworthy that the index has declined compared to the first quarter of 2014, which is normal in light of the above mentioned developments.

The individual financial situation index in the first quarter of 2015 increased by 6 points and recorded 118 points compared to 112 points during the last quarter of last year.

This reflects the improved evaluation of individuals for the current situation related to available job opportunities and income during the first quarter of the year compared to the fourth quarter of last year, in light of the good performance of the economy of the Emirate, and the emergence of evidence on the strength of the financial conditions against the developments related to the fluctuations of world oil prices, according to the Department of Economic Development, Abu Dhabi.

The index of confidence in the policies has also increased by 7 points and scored 127 points, on average, during the first quarter of 2015 compared to 120 points in the last quarter of 2014.

The results of the index of confidence of the consumers in the government policies reflect the increase of confidence levels among individuals of various demographic and social characteristics, in light of the growing interest of decision makers and the efforts exerted to upgrade the quality of life of all residents in the Emirate.

The future expectations index increased by about 3 points in the first quarter of 2015 and recorded 171 points, on average, compared 168 points in the fourth quarter of 2014. This reflects the improvement of optimism among levels among consumers about the future economic performance of the Emirate with the beginnings of 2015 compared to late last year, reflecting the demise of many concerns of consumers about the implications of unfavourable developments in the global economy on the Emirate of Abu Dhabi.

According to the nationality, the results of the general index of consumer confidence showed high levels of optimism among individual consumers of all nationalities during the first quarter of 2015 compared to the fourth quarter of 2014, while citizen consumers showed higher levels of optimism compared to other nationalities, as the general index of citizens recorded (153) points, on average, during the first quarter of 2015, increasing by 10 points compared to the fourth quarter of the previous year, while the general index of non-citizens, recorded 133 points on average, in the first quarter of 2015 compared to 129 points during the last quarter of 2014.

At the level of the employment status of the consumer, the trends of the general index of consumer confidence during the first quarter of 2015, reflected an improvement in the levels of optimism among working and non-working consumers, however working consumers were more optimistic with a general index of 141 points on average, during the first quarter of 2015, compared to 134 points in the last quarter of 2014.

On the other hand, the index of non-working consumers reached 133 points during the first quarter of 2015 and 131 points during the last quarter of 2014, reflecting an improvement of the confidence and optimism levels among consumers about the ability of the Emirate's economy to sustain the current job opportunities and income and create more opportunities in the future.

The trends of the general index of consumer confidence reflected high levels of optimism among consumers working in all sectors during the first quarter of 2015. The level of optimism improved among workers in both public and private sectors during the first quarter of 2015 compared to the last quarter of 2014, as the index increased to 147 for consumers working in public sector and 141 for consumers working in private sector, and remained stable (139) for consumers working in joint sector, reflecting the positive assessment of the consumers for their current situation and their optimism about the future.

The results of the general index showed continued optimism among individual consumers about their financial conditions as well as their confidence in the government's economic policies during the first quarter of 2015, as the financial situation index for individuals recorded 118 points during the first quarter of 2015 and the index of confidence in policies recorded 127 points during the same quarter.

The trends of sub-indexes which have had an impact on the performance of the general index which declined by 4.8% during the first quarter of 2015 compared to the same quarter of 2014, showed the impact of developments in the global economy and fluctuations in oil prices since the second half of 2014 and its impact on the consumer sentiment and his assessment of the current situation of economy in addition to his level of optimism about the future.

According to the age group, the general index of consumer confidence in the Emirate of Abu Dhabi showed improved levels of optimism among consumers of all age groups in the first quarter of 2015 compared to the fourth quarter of 2014. Younger consumers were more optimistic with an index of 141 points, on average, for consumers between 18 and 29 years of age, while the index for consumers between 30 and 50 of age reached 137 points and for consumers above 50 of age reached 135 points.

Optimism levels have also improved among consumers in various educational levels during the first quarter of 2015 compared to the fourth quarter of 2014. The level of optimism was highest for consumers with secondary education, followed by holders of university degrees and above, then consumers with least levels of education (illiterate / and low level education consumers).

The general index reached, on average, about 143 points, 138 points, and 134 points for the three groups, respectively, in the first quarter of 2014.