UAE among top 10 most optimistic nations

Dubai: Despite a slight drop of two points to 101 in the second quarter compared to the previous quarter, the UAE is still among the "top 10 most optimistic nations", according to the latest edition of the Nielsen Global Consumer Confidence Index.

Consumer Confidence Index levels above the baseline of 100 indicate degrees of optimism and those below show pessimism.

Nielsen's Global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among approximately 27,000 online users in 48 countries throughout Asia-Pacific, Europe, Latin America, the Middle East and North America.

"UAE consumer confidence is reflecting this disparity with a marginal drop not impacting its position in the top 10 optimistic nations this quarter," said Himanshu Vashishtha, Regional Managing Director of the Middle East and Pakistan at The Nielsen Company. "UAE consumers realise that the road to full economic recovery will likely take longer than expected and that they should still spend cautiously," Vashishtha said.

Household expenses

According to the survey, the number of consumers who perceived the UAE to be in a recession had dropped three points since the last quarter, with 42 per cent of those surveyed believing the recession would be over in the next 12 months. The survey also revealed that about 76 per cent of the nation's consumers had changed their spending habits to save on household expenses.

"I'm surprised the reading is positive," Simon Williams, HSBC's Middle East economist told Gulf News. "I think our near-term performance may be better than the major economies, but we are lagging more dynamic and the pace of growth is far short from what we generated in previous years," Williams said. "Economic growth is slow and credit is still difficult to access," he added.

Global consumer confidence cautiously edged up one index point to 93 in the second quarter of 2010 as increased confidence in booming Asian markets was offset by European consumers' growing concerns of an escalating debt crisis, the Nielsen Company said in a statement.

In the United States, consumer confidence rose two points, indicating it was on course for a slow but steady climb out of the recession.

The most optimistic nations in the second quarter were India (129 index points), Indonesia and Vietnam (both 119 index points). Lithuania (52) and Japan (55) were the most pessimistic nations.

The biggest drop in consumer confidence was in Spain which plummeted 10 index points to its lowest level on record at 69 index points, from 79 in the first quarter of this year.

---

Add this page to your favorite Social Bookmarking websites