(MENAFN- Khaleej Times) Consumers in Dubai are more optimistic on the overall state of the economy and job prospects in the city compared to six other leading cities in the world, the Department of Economic Development said on Tuesday.
The overall Consumer Confidence Index (CCI) for Dubai stood at 142 points during the second quarter of 2016, higher than that of Tokyo, Milan, Paris, New York, Bangkok and London, a study by the DED revealed. Dubai's latest score is a significant leap from the CCI score of 138 recorded in Dubai during the last quarter of 2015, the DED said. Overall, the upbeat consumer sentiments resonated with the pickup in business growth momentum in Dubai led by improving business conditions in the travel, tourism, wholesale and retail sectors. According to a recent Emirates NBD survey, new business volumes increased in Dubai for the fourth month running in June, partly driven by greater consumer spending. The DED said Dubai also stood out in terms of consumer perception on the overall economy and confidence in personal finance. In fact, consumer perception on the state of the economy was the brightest in Dubai as 82 per cent termed it as 'excellent/good,' whereas New York was in the second spot with 64 per cent voicing a similar sentiment. For 86 per cent consumers in Dubai and 74 per cent in New York, the personal finance scenario was 'excellent/good' in second quarter 2016. Paris (53 per cent), London (50 per cent), Milan (42 per cent), and Bangkok (36 per cent) were ranked next while Tokyo was at the bottom of the table with a 'Not so good/bad' situation revealed by 67 per cent. The DED said in its report that the difference in confidence levels is further reflected in purchase decisions. In Dubai, 79 per cent consumers saw it a good time to buy things they need and want, while in Tokyo, 65 per cent didn't feel confident to go shopping. Generally, tourism boom was seen to be main driver of positive consumer perceptions in all the seven cities but in Dubai particularly, confidence in the state of economy during second quarter was largely founded on the increase in rental/property prices. "The Consumer Confidence Index serves as a reliable, single indicator of consumer sentiment on the economic situation. Comparing consumer perceptions on the local economy with similar indicators across other major cities enables us to evaluate how Dubai scores as a global business destination in terms of competitiveness and sustainability," said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance and Consumer Protection sector in the DED. The DED monitors consumer confidence in Dubai every quarter, based on the responses to three questions regarding local job prospects, personal finances, and whether it is a good time to buy things that people need and want, all over the next 12 months. "The comparative analysis shows that the prevailing concerns in major cities are almost same, but there is optimism as well as sectors performing to expectations in certain economies. Particularly, personal spending plans for the year ahead in Dubai indicates an improved sense of job security and financial freedom, as well as robust retail activity ahead," said Lootah. Job security and the economy are the major consumer concerns in all the seven cities studied. Dubai and New York led in terms of job security, with the percentage of consumers foreseeing job prospects as 'excellent/good' standing at 78 and 71 in the two cities, respectively. "Overall, the comparison validates the steps taken by the leadership and the various public and private sector entities in Dubai to shore up confidence in Dubai as an ideal destination to live and do business, even amidst global instabilities," said Lootah. Inadequate increase in salary levels and lack of job opportunities were cited as the main drivers of negative perceptions on the current state of economy in all the seven cities. Abu Dhabi Economic Performance Report issued by the emirate's Department of Economic Development said consumer confidence in the emirate dropped around 16.6 per cent in the first quarter of 2016 compared to same quarter of 2015, with the general index for consumer confidence reaching 115 points in the quarter - down from 138 points. -
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