Consumer confidence in Saudi Arabia declined two points Q-o-Q in 1Q16, with recessionary sentiment rising in the low double-digit range, according to a survey by global research firm Nielsen. Consumers are now more cautious with their spending and prioritising their needs, cutting back on entertainment, upgrading of electronic gadgets and clothes. Sentiment was affected by heavy rationalisation in government spending, job security concerns and the geopolitical situation in the Kingdom, which have had a negative impact on consumer sentiment, the survey showed. UAE consumer confidence dropped four points Q-o-Q in 1Q16 to its lowest level in six years to a score of 104, also affected by the low oil price environment. Nearly half of the respondents believed the economy was in recession, with the biggest concern being job security; they are cutting back spending on entertainment, new gadgets and clothes. However, sales of retail fast-moving consumer goods, as measured by Nielsen, are also showing growth. Despite confidence declines in both countries, UAE and Saudi consumer confidence levels rate amongst the top ten countries globally, with the global consumer confidence level edging up one index point to 98 in 1Q16. (Gulf News)