Improved personal finance and jobs fuelling consumer confidence
Consumers and business owners in Dubai have stepped into the final quarter
of 2012 with renewed confidence and a brighter outlook on jobs and spending,
according to the quarterly Consumer Confidence Index (CCI) published by the
Department of Economic Development.
Positive sentiment guiding consumer behaviour and planning was largely
visible across Dubai during the July-September 2012 period. Overall consumer
confidence recorded in Dubai during the third quarter was 129, well above
the average of 100 and seven points higher than Q2 2012.
CCI recorded in the third quarter of 2012 is the highest since the
corresponding quarter of the previous year. A growing confidence on personal
finances is among the highlights of the third quarter index. Nearly 77 per
cent of the consumers sounded positive on their current financial situation
and 86 per cent have a brighter outlook for the next 12 months.
Consumer perceptions on Dubai’s economy has also shown remarkable
improvement in Q3 2012 with 66 per cent people expressing positive sentiment
on the current state of economy as against 55 per cent in the second
quarter. Dubai’s economy is also set to improve in the next 12 months,
according to 84 per cent of the respondents.
Two-third of the consumers rated job prospects during the third quarter as
very good even when job security and the state of the economy remained the
topmost concerns for most of them.
Business owners are more positive on jobs, thus giving job seekers stronger
reasons for optimism.
“Consumer confidence is a clear indicator of the perceptions on the state of
the economy and its key drivers. As recent surveys indicate, Dubai is
witnessing rising confidence among consumers, which is clearly reflected on
spending patterns and future planning,” said Sami Al Qamzi, Director General
of DED.
The Consumer Confidence Index is based on responses to three questions
regarding perceptions of local job prospects, personal finances and whether
it is good to buy things that people need and want, all over the next 12
months. Responses vary from Excellent or Good to Not so good or Bad.
Conducted in each quarter, the survey gathers feedbacks from 2,000
respondents, equally divided between the four quarters of the year. The
respondents are all Dubai residents and cover males and females as well as
nationals and expatriates, in the 20 to 59 age group.
“The responses in the survey help understand where the local market is
headed and to what extent consumers are willing to spend or save. As a
result businesses and development planners are able to prepare well for the
future and avoid negative market implications,” added Al Qamzi.
Consumer behaviour over the third quarter also shows a more prudent and
careful approach. The percentage of consumers spending on holidays, outdoor
entertainment, new technology products, home make-over or in paying off
debts, including credit cards and loans, showed a decline compared to the
second quarter. Meanwhile, four per cent more consumers started putting
their money in to savings in the third quarter compared to the previous
quarter.
