Consumer confidence fell across the Middle East and North Africa over the last three months due to the impact of the global financial crisis, according to a survey by research firm YouGov and Bayt.com, spelling more bad news for the region’s economies.
The survey, published on Sunday, found consumer confidence was the bleakest in Kuwait and the UAE, where the index (CCI) fell by 16.7 points and 15 points respectively in February, compared to the previous survey in November 2008.
Bahrain, Syria, Qatar and Lebanon also witnessed significant declines in consumer confidence, with drops of 12.0 points, 9.7 points, 8.9 points and 8.0 points respectively.
Algeria was the only country to see an increase, moving up the index by 1.5 points, according to the survey.
“What we are seeing with the results of the CCI is that while the effects of the global economic downturn can’t be taken in isolation, they are having a significant impact on this region, and more specifically are affecting some Middle Eastern countries much worse than others,” Amer Zureikat, regional manager of jobs website Bayt.com, said in a statement.
The index measures consumer expectations and satisfaction on subjects such as inflation, job opportunities and the cost of living.
Consumers have cut back on spending in the last few months as economic growth in the region stalls and job losses begin to mount. Easy credit, which has driven consumer spending over the last few years, has also dried up in recent months, further curtailing spending habits and dented confidence.
A HSBC consumer confidence survey published earlier this week found sentiment continued to fall in the first quarter compared to the fourth quarter of 2008.