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The second quarter of 2021 saw consumer optimism at its highest
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Consumer confidence rose to 151 points as against 125 points during the same period last year
For the first time in nearly ten years, Dubai’s consumer confidence has risen to its highest level, signaling a momentum for broader economic recovery.
The second quarter of 2021 saw consumer optimism rising to its highest level since 2011, according to the quarterly Consumer Confidence Index of Dubai’s Department of Economic Development (Dubai Economy).
According to WAM, consumer confidence rose to 151 points in Q2 2021, a marked increase from the 125 points recorded in the same period last year and the 145 points in Q1 2021.
Mohammed Ali Rashid Lootah, CEO of the Commercial Compliance and Consumer Protection (CCCP) Sector at Dubai Economy, said, “The latest Consumer Confidence Index, which shows remarkable improvements in consumer perceptions in Dubai during the second quarter of this year, reflects the growing momentum of broader economic recovery.
For example, 75 percent of consumers were positive on jobs, compared to 32 percent in the same period in 2020. Besides, 91 percent of consumers were also optimistic of finding a job in the next 12 months, compared to 75 percent in the same period last year.
Among those confident of finding a job, 81 percent fall in the 40-49 age group.” Consumers were also positive on their current personal financial conditions as 81 percent of them expressed confidence, compared to 57 percent in the same period in 2020. Those looking forward to improvements in their personal finance over the next 12 months constituted 85 percent in Q1 2021, compared to 73 percent in Q1 2020. Consumers in the 50-59 age group make up 88 percent of those optimistic of an improvement in their personal finance.
The Index showed that 84 percent of the consumers had a positive perception on the overall economy in Q2 2021, compared to 77 percent in the same period last year. The recovery seen in tourism and commercial traffic as well as increase in advertisements appeared to be the factors driving positive perceptions on the economy. 88 percent of consumers feel that the time is right to buy the things they need and want to buy, compared to 51 percent in the same period in 2020. Women constitute 93 percent of consumers planning new purchases.
The Index also showed that 49 percent of consumers will spend money left after meeting basic needs on vacations while 38 percent will spend it on outdoor entertainment and buying new clothes while 33 percent will save any excess money.
The Consumer Confidence Index, launched in 2011, captures a consumer’s perceptions on the overall economy, personal finance and job opportunities as well as intentions and expectations of buying and saving. The study helps in developing policies related to consumer protection, in addition to enabling the private sector to estimate demand and develop their marketing strategies accordingly.