Record surge in UAE consumer confidence: Nielsen Consumer Confidence Index

The global average also rose 9 points since April 2009.

Nielsen's Global Consumer Confidence Index tracked consumer confidence, major concerns and spending habits among more than 30,500 internet users in 54 countries. In the latest round of the survey, Vietnam posted the largest consumer confidence increase in the 2nd half of 2009 compared to first half, up 24 points from 85 to 109 index points, followed by Hong Kong (+23 points) and Chile (+22 points).

India, Indonesia and Norway continued to top the global rankings for the most confident nations, while the most pessimistic nations were Latvia and Japan. Consumer confidence rose in 45 out of the 52 countries compared to six months ago (Ukraine and Romania were recently added to the survey). The Nielsen Consumer Confidence Index hit its lowest point of 77 index points, six months ago, but as massive stimulus plans began to take effect around the world during the second quarter, consumer confidence slowly began to recover.

"Certainly consumers are getting more confident worldwide and more so in the UAE. They feel more comfortable about their financial situation and job security, hoping that the worst is over," said Piyush Mathur - Regional Managing Director - Middle East, North Africa and Pakistan.

The other two Middle East and North African (MENA) countries included in the survey, Egypt and Saudi Arabia, are less optimistic with the index dropping 3 points in Egypt (71) and 1 point in Saudi Arabia (78) since April 2009. Some 67% of Indians, 53% of Vietnamese and 54% of Chileans expect that the global recession will end in the next 12 months.

Globally, the economy and job security remained consumers' top concerns, but the level of these concerns has dropped in the last three months, with declines of five and eight index points respectively. In the UAE, 24% of consumers rate job security as a top concern (compared to 36% in April 2009). About 72% of the nation's consumers have changed their spending habits to save on household expenses, even though more than 65% of UAE consumers said that their state of personal finance is excellent or good for the next 12 months.

"While confidence is on the rise, consumers in the UAE are changing their spending habits as a response to the market conditions of the past months. They show more discretion, especially on buying new clothes; and they are cutting down on household expenses and switching to cheaper brands of grocery items."

said Mathur.

While global consumers continue to voice concerns about job security and the economy, many have started to focus on other issues. Concerns about work/life balance and health have increased since the last survey. In UAE, 29% of consumers cite finding a work/life balance a concern compared to April 2009 (22%) and 17% are concerned about health versus 6% in the six months ago, an indication that UAE consumers' focus on economy and recession is beginning to subside.

"This year has been fairly stressful but now consumers seem to be more concerned about their health and work life balance," added Mathur.