Consumer confidence indexed at 94 in the third-quarter of 2013, unchanged from the quarter earlier and only two points higher than 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 key developed economies, Egypt saw consumer confidence increase six index points from the same period 12 months ago, Nielsen information showed. Asked how they will utilize their spare cash after covering the essential living expenses, respondents confirmed that saving accounts are their ideal choice. However, even that choice recorded a decrease estimated by one point from the second quarter of 2013. Purchasing new clothes came second and recorded an increase of two points compared to that in the second quarter of the same year. The third option was entertainment followed by going on vacation, after which procuring new modern electronic gadgets came as the fourth option respondents chose to spend excess money on. Spending on technology gained three points from the second quarter of 2013.
According to the economic and political situation in Egypt, Nielsen index stated that the consumers’ major concern over the next 6 months is fear from terrorism, followed by concerns about the economy and fear from political instability, followed by trying to secure a suitable job, then the fear from crime and war. Some respondents pointed out that immigration became one of the important topics that concerned them, triggered by several concerns including terrorism, crime and war resulting from the political instability .
Nielsen Index pointed out that 85% of Egyptians think that their country is in an economic recession at the moment while 35% of them affirmed that Egypt is able to overcome the economic recession during the next 12 month.
The index also indicated that 59% of Egyptians changed their spending habits to reduce household expenses compared with the same time last year. This change was reflected through buying less fast food and clothes, to compress expenditures, as well as cutting down on money spent for entertainment, as well as phone calls. Consumers declared that they will delay upgrading their electronic gadgets as mobile phone, according to Nielsen index .
Commenting on the confidence indexed, Mr. Tamer El Araby the General Manager of Nielsen Egypt, said: “The the absence of security and political stability in the past period, especially after the events of June 30, affected the Egyptians’ confidence indicators and these resulted in the increase of the number of peoples whom chose to put into savings. They also reduced expenses in items as buying new technological devices and compress their travel expenses.”