Abu Dhabi: The index record of consumer confidence in the economic performance of Abu Dhabi Emirate reached 138 points during the first quarter of this year, marking a five-point increase over the fourth quarter of 2014.

However, the index showed a decline when compared to the first quarter of 2014 on the back of fluctuating oil prices, according to the economic performance report of Abu Dhabi that was issued by the Department of Economic Development (DED) in collaboration with the Statistics Centre Abu Dhabi.

The individual financial situation index in the first quarter of 2015 increased by six points, and recorded 118 points compared to 112 points during the last quarter of last year.

The increase reflects an improved evaluation of individuals for the current situation related to available job opportunities and income during the first quarter of 2015 compared to the fourth quarter of 2014.

The index of confidence in the policies reached 127 points during the quarter — a seven-point increase over the fourth quarter of 2014. Meanwhile, the future expectations index increased by about three points in the first quarter to score 171 points, reflecting the improvement of optimism about Abu Dhabi’s performance in the future.

Saleem Khokhar, head of equities at the National Bank of Abu Dhabi’s asset management group, said that the relative stability especially in oil prices in the first quarter of 2015 compared to the fourth quarter of 2014 was behind the improved confidence levels.

“[The relative stability] in the first quarter has been followed through in the second quarter, so you would expect to see that mobilise somewhat then. We’re also getting a little bit more clarity on how the government is going to deal with the shortfall in terms of revenue, so that allows consumers and indeed even businesses to get a better feel of what’s going on in the economy,” he said.

Consumer confidence

Khokhar added that recent reports and announcements about levels of economic growth in 2015 have helped boost consumer confidence, expecting more stability to come through towards the end of the year.

However, as prices move towards relative stability, Khokhar said that consumers will have to readjust to fuel deregulation, which may take a toll on their confidence.

“I think it may have a marginal impact, if any. I suppose we’re moving to a more international standard in terms of fuel prices. I think, initially, you may see a little bit of hesitance, but certainly a quick adjustment to higher petrol prices, so it won’t have a long-term impact,” he said.

According to DED’s report, the general index of consumer confidence showed higher levels of optimism among Emirati consumers compared to other nationalities during the first quarter of 2015.

The general index of citizens recorded 153 points on average, increasing by 10 points compared to the fourth quarter of 2014, while the general index of non-citizens recorded 133 points in the first quarter of 2015 — up from 129 points during the last quarter of 2014.