Abu Dhabi's consumer confidence in economic performance bullish in Q1

(MENAFN- Khaleej Times) Abu Dhabi''s General Index for Consumer Confidence in economic performance showed continuous optimism in the January-March period of 2016.

The Index scored 115 points on average reflects consumers'' confidence in Abu Dhabi''s economic might to "accommodate the current economic challenges," says the Economic Performance Report issued by the Studies Directorate of Abu Dhabi Department of Economic Development.

The Index included sub-indices covering the individual financial conditions index, and the index of confidence in economic policies related to the consumer.

The Index demonstrated how affected the consumers are in Abu Dhabi together with evaluation of their financial and living standards.

In addition, it showed their perspectives on impacts of economic measures taken. This was the result of internal and external factors including the rising inflation, the consumers'' concerns related to lower oil prices, the lackluster growth of emerging economies and the fluctuations in the global capital markets and their adverse impact on the UAE markets.

The consumers'' expectations were more optimistic about the future as to their confidence in Abu Dhabi''s economic capabilities that accommodated the on-going 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 of 2016.

The index declined slightly below the level of neutrality to 99 points on average.

The index performance was affected by the consumers'' evaluation on their financial situations during January. This evaluation was conducted at a time when the inflation had reached 3.3 per cent, according to SCAD, and there were concerns in regards to the global economic developments.

The oil prices recorded their lower levels affecting the consumers'' evaluation of their financial conditions in the period.

The index of confidence in the policies, which measures the consumers'' confidence in the government policies in regards to their living conditions, closed with 102 points in March. The index reflected consumers'' continuing confidence in the economic policies to sustain the living standards of Abu Dhabi citizens. It also reflected their positive perspective towards the government measures on the consumers related issues. The future expectations index rose two points to 148 points, on average to reflect a rise in consumer level of optimism in Abu Dhabi concerning the future of the economic conditions.

This was the case despite the fact that there are still continuous challenges related to the global economic developments as well as their impact on the economic conditions in Abu Dhabi. This reflects the consumers'' confidence in Abu Dhabi''s economic capabilities, thanks to its economic components, enabling it to accommodate the current economic challenges related to these developments.

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. Employed consumers were more optimistic as the index scored (117) points on average, during the mentioned quarter. On the other hand, the index of unemployed consumers scored (112) points.

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