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

Consumer confidence in Pakistan deteriorated sharply during the third quarter of FY26, with persistent inflation and worsening employment concerns putting significant pressure on household finances, according to a survey conducted by Dun & Bradstreet Pakistan and Gallup Pakistan.

 

The Consumer Confidence Index (CCI) fell to 65.3 in the quarter ended June, down from 86.4 in the previous quarter, representing a decline of 24.4%. The latest reading marks the lowest level in two years and reflects a substantial deterioration in consumer sentiment.

 

The survey's current sentiment index declined to 51.8, while the future outlook stood at 78.7. Although consumers remained comparatively more optimistic about future economic conditions than their present circumstances, both measures declined from the previous quarter.

 

The CCI assesses consumer perceptions through four key indicators: household financial conditions, the national economy, unemployment and savings.

 

Inflation emerged as the leading concern among respondents. Around 89.3% of the 1,592 people surveyed said they had experienced increases in the prices of essential goods over the previous six months.

 

Employment concerns also intensified, with 81% of respondents reporting that unemployment had worsened during the same period.

 

Household financial expectations remained weak, as nearly 40% of respondents anticipated that their personal financial situation could deteriorate further over the next six months.

 

Gallup Pakistan Executive Director Bilal Gilani said the latest CCI reading places consumers in an extremely pessimistic position, describing the decline as one of the sharpest single-quarter drops recorded in recent years. He noted that the weakness was not limited to expectations about the future, as the current sentiment reading also showed that households were facing significant financial pressure.

 

The decline in confidence was particularly pronounced among older consumers. Respondents aged 50 and above recorded a 30.4% drop in confidence, the steepest decline among the age groups surveyed. Younger respondents below 30 also became less optimistic, although their decline was comparatively smaller.

 

Dun & Bradstreet Pakistan Chief Business Officer Zubair Qureshi said the findings indicate that consumers are facing substantial economic pressure and that sentiment is unlikely to improve without visible progress on inflation and employment.

 

He added that the survey provides an important signal for businesses and policymakers as they assess economic risks and make decisions for the months ahead.