The Consumer Confidence Index showed an increase in the levels of confidence and optimism among consumers in Ajman after achieving 131 points, exceeding the global average, according to the report 2023 issued by the Department of Economic Development in Ajman (Ajman DED). This Index is measured periodically with a view of identifying the opinions and impressions of the consumer community in Ajman about the current and future economic conditions, in addition to their perceptions about current and future job opportunities and financial conditions in accordance with international methodologies and the best scientific practices followed in this field.
Sheikh Ahmed bin Humaid Al Nuaimi, the Representative of H.H. the Ruler of Ajman for Administrative and Financial Affairs, Chairman of the Ajman DED, said: “The positive result of the Consumer Confidence Index 2023, amounting to 131 points, represents a reflection of the level of general optimism about the conditions of the local economy, and predicts an increase in consumption activity and an increment in demand for financing and investment, including those that stimulate economic growth. This is attributed to the comprehensive and balanced economic policies at the UAE level, in general, and Ajman, in particular, in achieving a leading regional and global position that has enhanced the aspirations of consumers and investors alike. The Index result is also an incentive for the government and decision and policy makers to make more efforts and initiatives that support the economic and investment environment in Ajman, enhance the confidence of the businesses community, and provides a decent life for all residents of Ajman.”
For his part, H.E. Abdullah Ahmed Al Hamrani, Director General of the Ajman DED, stated: “The Ajman DED is keen to monitor and measure economic indicators periodically according to the best approved global methodologies, and the Consumer Confidence Index is at the forefront of these indicators that measure the consumer confidence and optimism about current and future economic conditions, and its result is an input important for future economic forecasts, as Ajman achieved 131 points in 2023. This supports the positive estimates of economic growth in 2024, which enhances Ajman's attractiveness for more qualitative investments in various sectors and activities.”
This Index - which is measured according to the Michigan Methodology, a worldwide recognized scientific reference - is based on a survey of a sample of families and individuals from the Ajman population with their various demographic and social characteristics. It includes several key subjects and questions about their assessment of the current conditions and their future expectations in aspects related to the general economic situation, with regard to their financial conditions and job opportunities. The index is measured on a scale of two hundred points, where a score of more than 100 points indicates an optimistic situation, a score of less than 100 points indicates a pessimistic situation, while a score of 100 points indicates a stable situation.
In detail, the report showed that 32% of consumers feel that the current economic conditions are better, 38% of consumers feel an improvement in their financial situation at present, and 12% of consumers indicated that their savings have increased compared to the previous six months. Regarding the ability to spend, 64% of consumers believe that the time is right to buy the durable consumer goods that they need and want to buy, which will reflect positively on increased spending in the local economy and contribute to supporting economic growth. The report also showed that 41% of consumers are optimistic about improving economic conditions during the next six months, and 37% of them expect that financial conditions and family income will improve, in addition to the fact that 41% of consumers are optimistic about the availability of more job opportunities during the same period.
The Consumer Confidence Index is a very important input to forecasts and estimates of economic growth and investment trends and identifies the general trend of consumer behaviors, impressions, and expectations regarding spending and saving. It also provides periodic readings on the consumer current insight and future expectations regarding the economic situation in general, and its results contribute to planning future initiatives that will enhance economic growth trends and local community confidence.