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 His Excellency 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 20-59 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.