First Abu Dhabi Bank Wealth Sentiment Index down 1.3% in July

DUBAI: Lower consumer prices and higher production costs helped pull down First Abu Dhabi Bank’s Wealth Sentiment Index in July, which fell 1.3 percent compared with the previous month.
The index, which measures the prevailing business and personal sentiment of top-tier UAE investors as well as the overall mood of the market, dropped to 1,040.66 points this month from 1,054.52 in June.
The decline recorded in the month of July was attributable to a set of factors, including the fall in inflation rates resulting from the drop in prices of property, telecommunications, hospitality and culture while the Purchasing Manager Index went up as a result of the increase in production, the sentiments index report said.
“This indicates an improvement in the economic outlook and confirms business sentiments remain high and companies are positive about the economy,” it added.
The first of its kind in the UAE and the region, the research takes the insights of thought leaders on three key areas: optimism within the UAE market, growth prospects in respective industries and personal investment choices, and is combined with key indicators including GDP, inflation and stock and commodity prices.