It has had positive effects on most of the commercial activities
63% growth in consumer spending in the UAE during August
Spending in the apparel and accessories sector grew by 78%. Photography: Osama Abu Ghanem
Statistics from the Federal Competitiveness and Statistics Authority showed a growth in the rates of consumer spending in the UAE by 63% during August 2020, compared to the end of last March.
The activity recorded during August 2020 included most sectors, including the restaurant sector, which recorded a growth of 75% in August compared to the end of March, while spending in the clothing and accessories sector increased by 78%, while spending in the hotel sector increased by 29%.
Positive effects
In detail, consumer spending in the UAE recorded further growth during this August, for the third month in a row, which was reflected in its positive effects on most commercial activities in the country, which gradually returned to activity since last June after the slowdown that had dominated it earlier.
The latest figures released by the Federal Competitiveness and Statistics Authority showed a growth in consumer spending rates of 63% during August 2020 compared to the end of March of the same year.
The latest figures issued by the authority showed that the total private consumption spending in the UAE amounted to 601.8 billion dirhams, while the per capita private consumption expenditure reached about 63 thousand and 300 dirhams, while the average monthly spending reached 5275 dirhams during 2019.
The amount of spending
According to economic concepts, consumer spending represents the volume of individuals' spending on durable goods, such as cars, furniture and non-durable goods, such as food and consumer goods, in addition to spending on school services, water, electricity and other services.
Private spending is a major driver of the national economy, in addition to government spending on projects, which in turn contributes to perpetuating the wheel of activity in all economic, commercial, financial, service and other sectors in the country.
Sectors
The activity recorded during August 2020 included most sectors, including the hotel sector, in which spending increased by 29% compared to the end of last March. The number of hotel establishments (hotels and hotel apartments) in the UAE reached about 1,136 during the past year. Spending in the restaurants sector also witnessed a growth of 75% this August compared to the end of last March, while spending in the clothing and accessories sector increased by 78%.
Food and medicine
Although spending on the food and medicine sector slowed by 32% during August of 2020 compared to the end of March of the same year, it is still up by 23% when compared to August of 2019.
• Spending in the restaurants sector registered a growth of 75%, and in hotels increased by 29%.
• The growth of consumer spending in the country has reflected positively on most commercial activities.