The results of the General Index on Consumer Confidence in Abu Dhabi's economic performance during the second quarter of 2018, issued by the Department of Economic Development-Abu Dhabi, showed a considerable improvement in the levels of confidence and optimism among consumers in the Emirate of Abu Dhabi. In regard to the about economic conditions in the Emirate given that levels of prevailing confidence among consumers represent one of the key enablers supporting business environment and economic performance I general.
The index ended the said quarter scoring an average of 144 points marking a significant rise compared with the same period in 2017. This reflects the extent of consumer confidence in the Emirate's economy capability to take advantage of the opportunities available, in light of the declared economic and development initiatives, in addition to the continuing improvement in the pace of global economic growth.
The General Index on Consumer Confidence in Abu Dhabi's economic performance during the second quarter of 2018 represents the outcome of the positive performance for its subsidiary indexes represented in the status quo indicators, which involves the perception of consumers on economic situation within the said quarter. As well as the future status Index that involves expectations of consumers regarding the future of economic situation.
Trends of the General Index & its subsidiary indexes by the end of second quarter of 2018 reflect an improvement in the perception of consumers in Abu Dhabi regarding economic condition within the said quarter, in addition to a higher level of their optimism regarding the future of economic performance in the Emirate. In light of a range of economic & development initiatives that have been launched recently by Abu Dhabi Government, Federal Government and the related expectations that impacts of implementing programs related to such initiatives will be reflected positively on the performance of the economy, consumers' conditions and the quality of their welfare.
The General Index on Consumer Confidence in Abu Dhabi's economic performance scores 144 points on average, during the second quarter of 2017 showing a rise in the level of consumers' confidence & positivity towards the future of economic situation in Abu Dhabi, as well as their positive perception of impacts expected upon the implementation of the programs under those initiatives, on their living conditions and the quality of their welfare.
With respect to consumers' perception of economic situation during the second quarter of 2018, the indicator of current situation records 114 points, on average during the said quarter to reflect an improvement in the assessment of consumers to the economic situation, while the state of waiting out regarding the implications of the introduction of VAT has declined further.
In this connection, inflation rates in the Emirate of Abu Dhabi during the second quarter of 2018 were lower than their counterparts in the first quarter of the current year, while the impact of reducing housing rental, in addition to other factors maintained inflation rate less than tax rate.
The indexes of future projections recorded about 165 points on average in the second quarter of 2018, reflecting a rise in the level of optimism in Abu Dhabi consumers' expectations about the future of economic situation in the Emirate in terms of macroeconomic performance, employment and income.
This represents a part of expectations related to the potential positive impacts of the programs to be implemented within the framework of the economic and development initiatives declared by the government in the Emirate of Abu Dhabi and the UAE and their direct & indirect impact on the living standards and welfare of citizens and residents. It is expected that prevailing levels of confidence and optimism among consumers contribute to supporting initiatives and efforts aimed at stimulating the economy and enhancing the development performance in the Emirate of Abu Dhabi.