EGYPT slipped 20 index points on the Nielsen's Consumer Confidence Index (CCI) in the first quarter (Q1) of 2013, compared to the fourth quarter of 2012. Egypt scored 74 points, the lowest ranked country among the Middle Eastern and North African states. The low ranking reflects a decline in consumer confidence in Egypt due to ongoing political and economic turbulence. “Egypt's decline in consumer confidence comes as no surprise as the country's unsettled political conditions and civil unrest continues,” said Rammohan Rao, managing director of Nielsen Egypt. “Labour strikes in Egypt are increasing since the revolution and several factories were forced to shut down due to protests. Tourism has also been affected as well as foreign investments, consuming Egypt's foreign reserves, which are down nearly two-thirds from before the uprising. With little money to spend and high inflation, Egyptians are forced to implement further belt-tightening measures in 2013,” said the survey. Several countries in the Middle East and North Africa saw a decline in consumer confidence. The Nielsen survey showed that six in 10 Middle East/ African respondents believed that local job prospects over the next 12 months would be bad or not so good, an increase of nine percentage points from the fourth quarter of 2012. Just over half (52 per cent) of respondents said the state of their personal finances was in good shape, down from 58 per cent in the fourth quarter of 2012. Sixty-seven per cent of Middle East/ African respondents were not confident they will be able to spend in the year ahead. According to the survey, one-in-four respondents (26 per cent) in the region said they had no spare cash after paying living expenses, an increase of five percentage points from the end of last year. Cash-strapped respondents planned to cut back on out-of-home entertainment and new technology purchases. “The number of respondents in the region who felt mired in a recession rose four points quarterly to 77 per cent, the highest among all the regions,” the survey said. Besides Egypt, consumer confidence also dipped in Saudi Arabia which dropped 16 index points while the United Arab Emirates (UAE) slipped five index points to 108th position. Nonetheless, the UAE remained the highest ranking of the region. Globally, the survey showed that global consumer confidence increased in the first quarter of 2013, rising two index points to 93 from 91 in the fourth quarter of 2012. Improved consumer attitudes about job prospects, personal finances and the ability to spend in the United States, across key Asian export markets and throughout northern and central Europe helped drive the quarterly uptick. On a year-over-year basis, however, the Q1 2013 index score of 93 is a point lower than it was in Q1 2012. The Nielsen Global Survey of Consumer Confidence and Spending Intentions, established in 2005, measures consumer confidence, major concerns and spending intentions among more than 29,000 respondents with Internet access in 58 countries. The latest round of the survey was conducted from 18 February to 8 March 2013.
