Global consumer confidence indexed at 94 in Q3 2013, no change from Q2 2013 and an increase of two p
Global consumer confidence indexed at 94 in Q3 2013, no change from Q2 2013 and an increase of two points from the same period last year (Q3 2012), according to consumer confidence findings from Nielsen, a leading global provider of information and insights into what consumers watch and buy.
In the Middle East, Egypt reported the biggest increase in the region of six index points compared to the previous quarter. The United Arab Emirates saw consumer confidence increase four index points to 111 from the previous quarter, capturing the fifth position among the global most confident nations. Saudi Arabia decreased three index points.
“Drastic changes over the past three years in Egypt have impacted the pockets of Egyptians,” said Tamer Elaraby, Managing Director, Nielsen Egypt. “After the revolution in January 2011, there was a spending slow down due to job losses and a lack of clarity amid the tumultuous environment. Despite the scarcity of jobs and low wages, however, Egyptians are optimistic by nature and believe that a new regime will bring them social justice and freedom, which is translating to improved consumer confidence results reported in the third quarter.”
The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns, and spending intentions among more than 30,000 respondents with Internet access[1] in 60 countries. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism. In the latest round of the survey, conducted between August 14 and September 6, 2013, consumer confidence increased in more than half (57%) of global markets measured by Nielsen, compared to 45 percent in Q2 2013.
Ready to Spend
Nielsen information shows discretionary spending intentions increased across most categories measured in Q3 2013 compared to intentions from the previous quarter. Plans to buy new clothes (35%) have increased two percentage points than last quarter and eight points compared to a year ago. Egypt comes in the seventh country globally that uses spare cash to buy new clothes. Spend on out-of-home entertainment (30%) witnessed a four points increase compared to last quarter and 11 points compared to a year ago. Spending intentions for holidays/vacations (21%) also marked five points increase compared to last quarter and also a year ago. Intentions to buy new technology products (17%) increased three percentage points compared to Q2 2013 and down six points compared to Q3 2012.
“In line with confidence findings and the current events, it is not surprising to see that Egyptians consumers are using a big portion of their spending for their leisure, holidays and entertainment,” said Elaraby. “Egyptians are in fact ranked the seventh across the 60 countries surveyed who spend on out of home entertainment.” Added Elaraby.
Recession and Savings not on the Minds of Many
According to Nielsen’s survey, 85 percent of Egyptian respondents believed they were in a recession in the third quarter, similar to the previous quarter yet 39 percent believe Egypt will get out of this recession within the coming year.
“Double-digit recessionary-sentiment improvements were reported,” emphasized Elaraby. “As much as Egyptians are aware they are in a recession, they have an increasing belief that Egypt’s economic stance will improve with a year positioning Egypt as the fifth nation on that matter,” he added.
Globally, respondents reported an increase in plans to save for the future, yet this was not captured among Egyptians. Forty percent of those surveyed putting spare cash into savings, with a decline of one percentage point and a seven points increase compared to a year ago. Also 59 percent said they changed their spending habits to save on household expenses, recoding a decline of two percentage points compared to last quarter.
Major Concerns
Terrorism is found to be the highest concern among Egyptians (47%) registering an increase of 40 percentage point compared last quarter. This ranks Egypt as the most concerned nation about terrorism globally. The second concern among Egyptians is the economy (33%) dropping from 39 in Q2 2013. Political stability is also one of the top concerns (31%) and is also found to be the highest globally.
