High ‘consumer index’ reflects Abu Dhabi’s economic potential

Abu Dhabi / WAM

The General Index for Consumer Confidence in Abu Dhabi’s economic performance during Q1 of 2016 recorded about 115 points on average, reflecting continuous optimism among the consumers of different demographic and social segments towards the economic conditions in Abu Dhabi.
This further reflects consumers’ confidence in Abu Dhabi’s economic capabilities to accommodate the current economic challenges and endure their pressures thanks to the economy’s potentials and capabilities.
This was part of the results of Abu Dhabi’s Economic Performance Report issued this week by the Studies Directorate of Abu Dhabi Department of Economic Development for Q1 of the current year within the results of the aggregate indices of economic sectors in the Emirate of Abu Dhabi. The General Index for Consumer Confidence in Abu Dhabi economic performance included sub-indices covering the individual financial conditions index, and the index of confidence in economic policies related to the consumer.
According to the report, the performance of the General Index for Consumer Confidence demonstrated how affected the consumers are in Abu Dhabi together with their evaluation of their financial and living standards. In addition, it showed their perspectives on impacts of measures and procedures taken within the framework of applicable economic policies during Q1 of 2016. This was the result of internal and external factors including the rising inflation rate in Abu Dhabi, the consumers’ concerns related to unfavourable developments of the global economy such as the continuing decline in oil prices in the global markets, the performance of emerging economies categories particularly the main economies such as China, Russia, Brazil and other countries exporting goods, and the shifts in the global capital markets and their impact on national markets.
The report added that this came in the wake of the developments of the global economy and the challenges faced by the main developed and emerging economies particularly countries exporting goods, including oil, due to its lesser prices in global markets. The consumers’ expectations were more optimistic about the future as to their confidence in Abu Dhabi’s economic capabilities, thanks to its economic components enabling it to accommodate the current economic challenges.
In March 2016, the individual financial conditions index recorded 102 points, reflecting the positive evaluation of individuals on their financial conditions at the end of Q1. The index value decreased slightly below the level of neutrality in the mentioned quarter recording 99 points on average.
The index performance was affected by the consumers’ evaluation on their financial conditions during January. This evaluation was conducted during the inflation rate which reached 3.3 percent in January, according to SCAD, and the concerns related to the global economic developments. Oil prices recorded their lower levels affecting the consumers’ evaluation of their financial conditions in Q1 of 2016.
As for the index of confidence in the policies, which measures the consumers’ confidence in the government policies related to their living conditions, it ended up, during Q1 of 2016, with 102 points in March. The index value reflected consumers’ continuing confidence, despite of their different characteristics, in the economic policies to sustain the living standards of Abu Dhabi citizens. It also reflected their positive perspective towards the government measures and procedures related to the consumer.
As for future expectations index, it scored 148 points, on average, during Q1 of 2016. It increased by 2 points compared to its level in the last quarter of 2015. Hence, it reflects a rise in consumer level of optimism in Abu Dhabi concerning the future of the economic conditions therein.
As for the consumer employment status, the trends of the General Index for Consumer Confidence during Q1 of 2016 showed the continuous optimism feeling among employed and unemployed consumers.