Pakistan consumer confidence dips amid inflation and job concerns

Dun & Bradstreet Pakistan and Gallup Pakistan have released the 19th edition of the Consumer Confidence Index (CCI) for the first quarter of FY2025-26, revealing a notable decline in sentiment.

The index fell to 86.4, down from 96.2 in the previous quarter, a 10.2% drop. Despite this, confidence remains 18.5% higher than the same period last year, reflecting some year-on-year improvement.

The CCI measures consumer perceptions of the economy and personal finances across four parameters: household financial situation, national economic conditions, unemployment, and savings. Both current sentiment and future outlook weakened this quarter, with current confidence plunging to 74.7 from 88 and future confidence easing to 98.2 from 104.3, indicating cautious optimism.

Inflation remains the primary concern, with 84% of respondents reporting price increases for essential goods. Unemployment also continues to weigh on sentiment, with a net indicator of 56.5, highlighting persistent labor market strain.

Perceptions of Pakistan’s overall economic situation dropped from 100.8 to 92.5, and fewer respondents expect improvement over the next six months.

Encouragingly, optimism about household finances endures, with 62% expecting stability or improvement in the coming months. Commenting on the findings, Bilal I. Gilani, Executive Director at Gallup Pakistan, said: “This quarter’s drop in consumer confidence reflects inflation and weak job sentiment. People are less upbeat about the present, but they still expect the future to be better. Stability has helped, but without real economic growth, consumer sentiment will not rise much further. People are waiting for jobs and income to grow before they fully believe in a recovery.”

Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, added: “The Consumer Confidence Index is a critical barometer for understanding market sentiment. While short-term challenges persist this quarter, the resilience in household financial expectations signals that businesses have an opportunity to align strategies with evolving consumer priorities.”

Confidence declined across all demographics, with urban respondents down 24% and rural respondents down 21%. The steepest fall was among the 30–49 age group (-27%). The survey was conducted telephonically among 2,132 respondents between September and October 2025.