Gallup and Dun & Bradstreet publish report on  ‘Consumer Confidence Index in Pakistan’.

ISLAMABAD ( PRESS RELEASE )

Gallup Pakistan and Dun & Bradstreet are pleased to publish their inaugural report on  ‘Consumer Confidence Index (CCI) in Pakistan’.

The Consumer Confidence Index (CCI) is a reflection of current sentiments and future outlook as seen through the eyes of consumers across Pakistan. The CCI score is an indicator of consumer optimism/ pessimism about the economy, as well as their own financial situation.

The Consumer Confidence Index was 79.1 points in Aug Survey, compared to 79.0 points in Feb Survey. Thus, the overall consumer confidence in Pakistan has remained pessimistic in both the surveys, and was pessimistic even during pre-COVID times. Sentiments about the current situation are more negative in Aug Survey due to the impact of COVID-19. This is indicated by a decline of current CCI by 12% to 60.7 in Aug Survey, compared to a score of 69.1 in Feb Survey.

Due to early signs of economic rebound seen in Pakistan during Jul-Aug 2020, respondents are less pessimistic about the future in Aug Survey. Hence, Future CCI improved by 9.5% to 97.5 in Aug Survey from 89.0 in Feb Survey.

Key Findings
1. Impact on Employment
Unemployment situation in the country seems to be the most impacted as a result of COVID-19.
4 out of 5 consumers feel that Unemployment rate has increased/ increased a lot in the last 6 months; While 3 out of 5 consumers fear that Unemployment rate will further increase/ increase a lot in the next 6 months.

2. Household Financial Situation
Only Overall CCI related Household Financials Situation improved in Aug Survey and became neutral, highest overall index score among all CCI parameters.
2 out of 3 respondents (64%) felt that their Household Savings had reduced in the last 6 months, however 56% expect it to improve/ remain the same in the next 6 months. During Feb Survey, 50% had expected situation to get better/ remain the same. Thus, indicating relatively higher optimism of the future, during Aug Survey.

3. Price Trend of Daily Essentials
Increasing prices of daily essentials is a major concern; this parameter has the lowest Net Indicator of 29 (versus all other parameters of the survey).
~2 out of 3 consumers surveyed in Aug mentioned that prices of daily essential items have become very expensive.