Egypt’s second-quarter score jumped three points from the previous quarter to 81, according to consumer confidence results from Nielsen.
Job prospect sentiment improved two percentage points (31%) andpersonal-finance sentiment remains at 49% favorable. Immediate-spending intentions improved by one percentage point (31%), although one in three respondents said they had no spare cash after covering essential living expenses, with levels in Egypt being above the average in the Africa/Middle East region.
“Consumer confidence in Egypt increased three index points in the second quarter but with a four-point index decline compared to the same time last year,” said Tamer El Araby, managing director, Nielsen North Africa and LEVANT. “The perception that the economy is in recession has increased by three percentage points to 85% and only one out of four believes that the economy will recover. We also witnessed the decrease in concerns on terrorism while there are growing concerns on the economy and job security.”
Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.
Global consumer confidence remained in a holding pattern in the second quarter
Global consumer confidence held steady in the second quarter of 2016 at 98, an index score that was flat from the first quarter. North America was the only region to sustain growth momentum in the second quarter with a three-point confidence increase to 111.
● In North America, U.S. consumer confidence maintained positive momentum in the second quarter, increasing three points to 113 from the previous quarter.
● In Asia-Pacific, confidence was relatively stable at 107, a one-point decrease from the first quarter. Japan’s confidence was of particular significance since it decreased four points to 69; it was Japan’s fourth consecutive quarter of declining scores, amid weak consumption and wage growth. Japan’s GDP has been on a declining trend since 1997 and is currently at 0.5%. Japan’s exports fell for the eighth consecutive month in May. China’s score increased one point to 106
● In Latin America, confidence remained at 78, unchanged from the first quarter. Brazil’s score was flat at 74, while Peru’s score increased 11 points to 102.
● In Europe, Germany’s confidence decreased one point to 96. Meanwhile, Nordic countries and Eastern Europe showed confidence increases in the second quarter.
Confidence in Africa/Middle East was relatively stable
In the six Africa/Middle East countries measured, confidence scores, which ranged from a high of 109 in the United Arab Emirates (a five-point increase from the first quarter) to a low of 78 in South Africa (a three-point increase) have been relatively consistent in each country over the past three or four quarters. Confidence in Saudi Arabia and Pakistan remained at 104 each, unchanged from the first quarter. Egypt’s score of 81 increased three points from the first quarter, while Morocco’s score of 83 declined one point.
The second-quarter online survey was conducted May 9–27, 2016. The findings in this survey are based on an online methodology in 63 countries. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing internet users, not total populations. In developing markets where online penetration is still growing, audiences may be younger and more affluent than the general population of that country. Three sub-Saharan African countries (Ghana, Kenya and Nigeria) utilize a mobile survey methodology and are not included in the global or Middle East/Africa averages discussed throughout this report. In addition, survey responses are based on claimed behavior, rather than actual metered data. Cultural differences in reporting sentiment are likely factors in the measurement of economic outlook across countries. The reported results do not attempt to control or correct for these differences; therefore, caution should be exercised when comparing across countries and regions, particularly across regional boundaries.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy.