Consumer Confidence Grows Sharply Despite Job Concerns

The overall Consumer Confidence Index (CCI) recorded a notable increase of 9.2 percent over the previous quarter and exhibited a substantial 24.6 percent improvement compared to the same period last year. According to the eighteenth edition of the Pakistan Consumer Confidence Index (CCI) for Q4 FY2024-25, based on interviews conducted during April–May 2025 by Dun & Bradstreet Pakistan in collaboration with Gallup Pakistan, consumer confidence regarding both the overall economic environment and individual financial conditions has improved. “In Q4 2025, consumer confidence has continued its upward trajectory. The Consumer Confidence Index (CCI) is now at its highest level since Gallup & Dun & Bradstreet began tracking it in 2022,” said Bilal I Gilani, Executive Director of Gallup Pakistan. The CCI report assesses consumer sentiments across four key areas: Household Financial Situation, Country’s Economic Situation, Unemployment, and Household Savings. This index offers insights into the ‘Current Sentiments’, reflecting economic shifts experienced in the past six months, as well as the ‘Future Expectations’, i.e., expected changes in the next six months. The CCI is measured on a scale ranging from 0 to 200, with 100 serving as the neutral benchmark. A score below 100 indicates consumer pessimism, whereas a score above 100 reflects optimism. The latest survey results reveal that the CCI stands at 96.2 points, marking an improvement from the previous quarter’s score of 88.1. This upward shift reflects growing optimism among consumers, particularly in their financial outlook and expectations for the future. “The Consumer Confidence Index (CCI) report serves as a critical reference for policymakers, financial institutions, and businesses. This quarter, we have observed a continued upward trajectory in consumer confidence, supported by improvements in financial sentiment and future expectations,” stated Muhammad Zubair Qureshi, Chief Business Officer of Dun & Bradstreet Pakistan. “The fact that the Future Confidence Index has surpassed the 100-point benchmark for the first time since the launch of this report is a significant indicator of growing public optimism. However, persistent concerns around employment emphasize the need for sustained economic reforms and inclusive job creation strategies,” he added. The Net Indicator for Household Income increased significantly from 98.3 to 110.0, reflecting a rise in consumer confidence regarding future income. Similarly, the Household Financial Situation registered the highest Net Indicator this quarter, with over half of the respondents expecting their financial conditions to improve or remain stable. Consumer expectations for Household Savings also improved, with 57 percent anticipating either stability or growth in the coming months. Despite improvements in financial optimism, concerns about employment persist, with 61 percent of respondents perceiving a rise in unemployment over the last six months. However, the overall confidence levels have improved compared to the previous cycle, with 57 percent of consumers expecting economic conditions to improve or remain stable. A demographic analysis revealed that consumer confidence improved across all segments. The highest rise in optimism was recorded among respondents under the age of 30, who showed an 8 percent increase in confidence compared to the previous year, followed by male respondents. “For the first time, the Future Confidence Index has crossed the 100 mark — a key threshold indicating that more Pakistanis are optimistic about the economy’s future than those who are pessimistic. These are all positive and vital signs for our economic outlook,” he added.