Dun & Bradstreet Pakistan and Gallup Pakistan have recently launched the fifteenth edition of the ‘Pakistan Consumer Confidence Index (CCI) Q3 FY2023-24’. This publication systematically evaluates consumers’ confidence in the economy and their personal financial situation from January 2024 to March 2024. The CCI report assesses sentiments across four key areas: Household Financial Situation, Country’s Economic Situation, Unemployment Situation, and Household Savings. This index offers insights into both ‘Current Sentiments’, reflecting economic shifts experienced in the past six months, and ‘Future Expectations’, predicting changes for the next six months. By providing a holistic view of consumers’ outlook nationwide, it serves as a valuable resource for comprehending the economic terrain and its anticipated trajectory.
Ravissh Hasan, Associate Regional Director – Marketing of Dun & Bradstreet Pakistan stated, “The Consumer Confidence Index (CCI) report holds considerable significance for a multitude of stakeholders, encompassing Policy Makers, Development Financial Institutions, and businesses spanning diverse sectors. We have witnessed a minor decline in the overall CCI since last quarter, however, there is a significant improvement in the index from the same time last year which highlights the overall improvements made across the key areas captured in the report. This serves as an indicator that the country needs to continue its effort towards economic prosperity and providing a growth friendly environment to all stakeholders.”
Bilal Ijaz Gilani, Executive Director Gallup Pakistan, while commenting on the findings of the report, added, “CCI for the current quarter shows a minor decline. This decline comes after two quarters of improvement in consumer perception about the economy. This quarter’s report is a reminder to us that growth in the economy needs to be sustainable and achieved on stable basis which can only come from major reforms that reinvent the economic wheel. Otherwise, we would continue to see small cycles of recovery followed by cycles of decline.”
In this survey a telephonic discussion was conducted with 2,008 respondents during March 2023 and thus relates to Third Quarter of Fiscal Year 2023-24 (FY2023-24).
The Consumer Confidence Index ranges from 0 to 200, with 100 as the neutral value. A score of less than 100 indicates pessimism and above 100 indicates optimism. The current quarter’s Consumer Confidence Index is 77.7 points, compared to 79.7 points in the previous quarter and 65.1 in the same time last year. The overall consumer confidence remains pessimistic quarter over quarter but has improved substantially year over year.
More than half of the consumers were hopeful that their household financial situation would either stay the same or improve in the next six months. While almost half of the consumers expected the country’s economic situation to improve or remain the same in the next six months.
Employment Opportunities and Prices of Daily Essentials were the biggest concerns for consumers. Four out of five consumers surveyed felt that the Unemployment Situation has gotten worse in the last six months; however, they were relatively more optimistic about the future.
Overall Sentiments of consumers declined across Punjab, Sindh and KPK, whereas Balochistan saw a 24.7% increase. Punjab and KPK saw a modest decline in overall sentiments of 1% and 1.5%, respectively. Consumer confidence in Sindh saw the biggest decline of 11.7%. Consumers in Punjab remain the most optimistic, followed by Balochishtan, KPK and Sindh.
Consumers’ sentiments largely remained the same due to economic and political stability during the time captured in the CCI. With the elections held in March 2024 and the expectations of better economic growth going forward, consumers were more hopeful of the future prospect with the Future CCI score being 91.9, which is 44.7% higher than the Current CCI score of 63.5.
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