Pakistan consumer confidence falls to two-year low amid inflation, job fears

Consumer confidence in Pakistan fell sharply in the third quarter of the current financial year, with inflation and unemployment weighing heavily on household sentiment despite signs of broader macroeconomic stability.

The Consumer Confidence Index (CCI), compiled by Dun & Bradstreet Pakistan and Gallup Pakistan, fell to 65.3 in the third quarter of FY2026 from 86.4 in the previous quarter — a 24.4% decline and its lowest level in two years.

The 20th edition of the index, based on a survey of 1,592 respondents, showed deterioration in both perceptions of current economic conditions and expectations for the months ahead.

The current sentiment index fell to 51.8, while the future expectations index declined to 78.7, although it remained considerably higher than the current sentiment reading.

The CCI measures perceptions of household finances and the broader economy across four areas: household financial conditions, national economic conditions, unemployment and savings.

Inflation emerged as the most widespread concern. About 89.3% of respondents said they had experienced increases in the prices of essential goods over the previous six months.

Concerns over employment also intensified, with 81% saying unemployment had worsened during the same period. Nearly four in 10 respondents expected their own financial situation to deteriorate further over the next six months.

“The Q3 2026 reading of 65.3 places Pakistan firmly in extremely pessimistic territory, the sharpest single-cycle drop we have recorded in recent years. What stands out is that this isn't a crisis of expectations alone: the current sentiment index has fallen to 51.8, meaning people are not just worried about tomorrow, they are struggling today,” Gallup Pakistan Executive Director Bilal Gilani said.

The decline was particularly pronounced among older respondents. Confidence among people aged 50 and above dropped 30.4%, the steepest decline among the age groups surveyed. Younger respondents under 30 also became less optimistic, although their decline was comparatively smaller.

Dun & Bradstreet Pakistan Chief Business Officer Zubair Qureshi said the findings showed that consumers were facing immediate financial pressure.

“These numbers show consumers are under real pressure right now. Confidence won't recover on its own; it will take visible improvement on both fronts before sentiment shifts. This is exactly the kind of signal businesses and policymakers need as they assess risk and plan for the months ahead,” Qureshi said.