Consumer confidence in the UAE was the highest in the region, while Saudi Arabia (KSA) posted confidence scores that was at the optimism baseline in the third quarter of this year, according to a Nielsen report.

The Nielsen Global Survey of Consumer Confidence and Spending Intentions recorded a Consumer Confidence Index of 100 for KSA in Q3 2016, down from 104 in Q2 2016. Despite the decline, KSA is amongst the 16 countries globally to reach or exceed the optimism benchmark, the agency said.

The UAE's confidence score was 108, a one-point decrease from the second quarter.

India tops

Five of the world’s top 10 economies posted optimistic scores of 100 or higher with India scoring the highest at 133. US, China 106 and the UK scored 106 while Germany was at 100.

Consumers’ outlook on personal financial situation was a major contributor to declining confidence; just over half of KSA respondents (56 per cent) feel favourable about the state of their personal finance over the next 12 months, a drop of eight percentage points from the previous quarter. The number of consumers feeling positive about the outlook on their job prospects declined four percentage points to 46 per cent quarter-on-quarter, while the proportion of consumers who believe the coming 12 months will be a good time to buy the things they need and want increased slightly by two percentage points to 47 per cent from the second quarter.

More than one third of KSA respondents (45 per cent) cited job security as their biggest or second biggest concern over the next 12 months. Job concerns were followed by worries about the economy (26pc) and parents’ welfare and happiness (16pc).

“The still-low oil prices have taken its toll on government revenues with fiscal deficit weighing on the country’s economic growth. Although there has been a slowdown in growth, KSA’s confidence has proven to be fairly resilient as it maintained solid footing with indexes at or above optimism baseline for at least the past 10 quarters,” said Arslan Ashraf, managing director, Nielsen Arabian Peninsula and Pakistan. “In spite of the decrease in confidence, there are some segments of consumers that are still upbeat about spending across a few lifestyle areas such as new clothing and technology products.”

Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

ECONOMIC DIVERSITY

These are uncertain times and third quarter Nielsen Consumer Confidence Index scores varied dramatically region to region, demonstrating considerable economic diversity around the world. In Asia-Pacific, consumer confidence scores ranged from a high of 133 to a low of 46, with similar divergent scores in Europe (from 107 to 50), Latin America (from 104 to 57) and Africa/Middle East (from 108 to 70). In North America, however, confidence scores were more closely aligned in the US (106) and Canada (97).

Notable global highlights include:
●    Global consumer confidence increased one point from the second quarter to a score of 99.
●    Confidence gains were seen throughout most measured markets in Asia-Pacific, Latin America and Europe. Meanwhile, confidence decreased in four of six Africa/Middle East markets and in one of two North American markets.
●    Concerns about terrorism increased across Europe, North America and Asia-Pacific in the third quarter.
●    In Europe, consumer confidence improved in 26 of 34 measured markets from the second quarter. The UK’s score increased eight points.
●    In Asia-Pacific, confidence increased in 10 of 14 countries, while four markets were flat from the second quarter. Robust improvements came from Hong Kong, Thailand and Singapore.
●    In Latin America, confidence increased in six of seven markets, including Brazil, which posted its first upswing in two years.
●    In the Africa/Middle East region, South Africa posted a solid confidence increase of nine points. - TradeArabia News Service