UAE consumer spending up in August

In a sign that bodes well for an eventual market recovery after the coronavirus, consumer spending in the UAE continues to increase for the third straight month, jumping 63 per cent in August as compared to March, according to statistics released by the Federal Competitiveness and Statistics Authority (FCSA).

Hoteliers were among the top beneficiaries, as spending rose 29 per cent in August comparatively with March. The number of hotel establishments (hotels & hotel apartments) reached 1,136 by the end of 2019.

According to the statistics, spending in restaurants improved by 75 per cent in August. In the apparel sector, expenditure increased by 78 in the reference period as shopping malls and outlets started to reopen nationwide.

In the meantime, expenditure on food supplies and medications, both online and conventional purchases, slowed at 32 per cent as compared to March.

UAE consumer prices declined during the period from June 2019 through June 2020, pushing the Consumer Price Index (CPI) down by 2.36 per cent, according to recent figures released by the Federal Competitiveness and Statistics Authority.

CPI is an important economic indicator. It provides a measure of changes in prices over time paid by UAE households for a fixed basket of goods and services. It’s an important component in monitoring the levels of inflation in an economy. If there’s inflation when goods and services cost more the CPI will rise. If the CPI declines, that means there’s deflation, or a steady decrease in the prices of goods and services.

The group with the largest annual decrease was the Recreation and Culture with 18.66 pct. Within the Food and Beverages Group, fish and seafood recorded the largest monthly increase of 2.03%. In the meantime, the group with the largest annual increase over this period was Textiles, Clothing and Footwear with 10.70 per cent.

WAM