Egyptian consumer confidence in the third quarter of 2012 held the same ranking as the previous quarter, standing at 103 on the Nielsen’s consumer confidence index.
Nielsen’s latest study, surveying around 29,000 online consumers in 58 countries between 10 August and 7 September , revealed that global consumer confidence rose by one point in Q3 of 2012.
The survey recorded a 16 percentage point drop from Q2 in Egyptians’ concerns over political stability. Yet, figures pertaining to consumer confidence in the job market and the economy in general were not as favourable.
Citizens’ outlook on the prospects of employment during Q3 declined by two percentage points from Q2. The majority of Egyptians (80 per cent) believe the economy is in recession but are optimistic that the economy will recover during the coming 12 months.
“This optimism seems to be fading, having dipped five per cent since the previous quarter. People would like to believe that the regime change will gradually improve the economic situation, but the slight dip in their optimism in this quartier is a bit worrying, the new regime needs to act quickly and send out positive messages that they indeed taking concrete steps to improve the economy,” said the Managing Director of Nielsen Egypt, Ram Moham Rao.
The highest rise in concerns, according to the survey, relate to the general state of the economy. The study recorded a 31 per cent increase from the previous quarter. Angst over the job market among Egyptians recorded the second highest, dropping by 27 per cent from Q2. Astonishingly, concerns over a rise in food prices dipped by five percentage points this quarter.
“Having a president and a new government have reduced Egyptians’ concerns about political stability their concern now is about the economy,” said Ram. “Obviously the government needs to play a key role quickly in sending out the right signals to people that the economy is being nursed back to health.”
Nielsen’s 2012 Q3 survey found that overall confidence rose in 52 per cent of global markets, as opposed to 41 per cent in Q2 of 2012. Out of 58 markets surveyed, 30 saw an increase; seven remained unchanged while 19 witnessed a decline.
Commenting on the results of the study, the chief economist at The Cambridge Group (part of Nielsen), Venkatesh Bala, highlighted that, “the subdued third quarter results reflect an overall trend that is neither positive nor negative as consumers are treading water very carefully… consumers played it safe in Q3, especially in Europe, which still faces a very precarious economic situation despite some recent stabilising policy initiatives by the European Central Bank. Export growth from China, especially to the Euro zone, has slowed substantially accompanied by restraint among consumers there. Consumers in the US, while less directly impacted by Europe, continue to be cautious in the face of an uneven recovery, marked by still-elevated unemployment levels and disappointing payroll growth.”
