Overall optimism has fallen to levels seen at the start of 2024, with only 11% of Pakistanis believing the country is moving in right direction: IPSOS Survey
Confidence in job security reaches a three-year peak, with a substantial 3 out of 5 Pakistanis now expressing confidence in their job security
ISLAMABAD ( WEB NEWS )
According to the results of the Consumer Confidence Index Survey conducted by IPSOS, despite some improvements in the economy, overall optimism has fallen to levels seen at the start of 2024, with only 11% of Pakistanis believing the country is moving in the right direction.
While the economy remains the dominant worry, concerns about rising electricity prices and taxes have intensified in 2024, highlighting the growing anxieties surrounding the cost of living.
Since the beginning of 2024, optimism regarding local economic and conditions has dropped significantly. Currently, only 1 in 10 Pakistanis anticipate improvements in the next six months.
In a positive turn, confidence in job security has reached a three-year peak, with a substantial 3 out of 5 Pakistanis now expressing confidence in their job security.
The date for the survey was collected from 15th to 20th Aug 2024.
According to the survey, 1 in 10 Pakistanis believe that country is headed in the right direction. Rural population are more optimistic than urbanites.
Optimism has significantly decreased from 18% to 11% in Q3, regressing to about same level as Q1.
Economic problems continue to top the list of worrying issues for Pakistanis despite some improvement. In Q3 people are increasingly worried about rising electricity prices and taxes. Since the beginning of 2024, the perception of economic challenges as the most worrying issue has lessened in Pakistan, touching a two-year low. At the same time, concerns about the rising electricity prices and the burden of taxes have become significantly more pronounced, with concern about taxes reaching a 4-year high.
13% Pakistanis believe that economic condition of the country is strong. Males, rural residents, post-graduates and upper class are more optimistic.
Pakistanis calling country’s current state of economy as ‘strong’ has decreased by 4% in this Quarter, whereas those call it weak increased slightly by 1%.
The percentage of Pakistanis who feel comfortable making daily purchases has dipped by 4 percentage points since Q2.
Since the beginning of 2024, optimism about local economic conditions has experienced a continuous decline, hitting the lowest point since November 2023, with only 1 in 10 Pakistanis now expecting improvements within the next six months.
Similarly, optimism about local economic conditions has declined about 3x since Q1 2024, hitting the one year lowest, with only 1 in 10 Pakistanis now expecting improvements in the next six months.
After a year of consistent growth in confidence about future savings, the trend getting reversed in Q3 by 5%.
Since Q2, slight decrease in %age of Pakistanis (6%) who are comfortable in making major purchases. Since September 2023, confidence in job security has steadily increased, reaching a three-year high in Q3 2024, with 3 out of 5 Pakistanis now expressing confidence in job security.
Ipsos Global Consumer Confidence Index (GCCI) is a national survey of consumer attitudes on the current and future state of the local economy, personal financial situation, as well as confidence to make large investments and ability to save. Consumer sentiment is a key predictor of purchase trends in the market. Despite it being a lagging indicator, if consumer confidence is high, people will make more purchases and the economy will expand. Businesses and Policy Makers can monitor changes in the index to factor the data in their decision-making processes. A wave-on-wave decreasing trend suggests consumers have a negative outlook on their ability to spend. Thus, manufacturers may expect consumers to avoid retail purchases, particularly items that require financing. Likewise, banks can anticipate a decrease in lending activity, mortgage applications, and credit card usage.