In countries heavily reliant on oil production, consumer confidence showed a downward trend, according to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions.
In particular, confidence in the United Arab Emirates (UAE, at 104) and Saudi Arabia (104) remained above the optimism baseline, but declined four and two points, respectively, from the previous quarter. A favorable job outlook for the next 12 months declined eight percentage points in each country, dropping to 51% in the UAE—the lowest level since 2010 and to 48% in Saudi Arabia (the lowest level since 2013).
“In the UAE, the decline in oil prices is likely taking a toll on consumer sentiment, which has dropped to the lowest level in six years,” said Arslan Ashraf, managing director, Nielsen UAE. “One in every two respondents believed the economy was in recession, even though it wasn’t, and job security was the biggest concern. Many in the country said they are cutting back spending on entertainment, new electronic gadgets and new clothes, spending down debt or saving for a rainy day instead. However, while Nielsen sales of the retail fast-moving consumer goods Nielsen measures are slowing, they are still showing a positive trend.”
Confidence also declined seven points in South Africa to 75—a new low for the country in Nielsen’s 11-year consumer-confidence history. Positive personal finance sentiment declined eight percentage points to 49%, while favorable job prospect sentiment declined four percentage points to 18%, and immediate-spending intentions declined five percentage points to 22%.
“In South Africa, increasing levels of unemployment, lackluster economic growth and rising inflation is making it difficult for consumers in the country,” said Bryan Sun, managing director, Nielsen South Africa.
“The fall in commodity prices has resulted in declines in employment in important and traditional sectors of the economy such as mining, manufacturing, construction, transport and electricity. The economy, increasing food prices, and job security are the biggest concerns for South Africans.”
