KARACHI: Consumer confidence index in Pakistan went up by five points from the previous quarter, reaching 106 in the October-December period, reveals Nielsen’s global survey of consumer confidence and spending intentions.
Consumer confidence index took a hit in the previous quarter, declining by three points during July-September. However, the index gained to reach its highest level since 2008, stated the report.
The primary concern during 2016 was job security and parent’s welfare and happiness.
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The year ended with 21% of the respondents still addressing their worry with job security and 14% with parent’s welfare and happiness.
Although job security is a big concern, the country’s outlook towards job prospects has positively increased with 51% of Pakistanis remaining optimistic over job opportunities over the next 12 months.
Resultantly, Nielsen’s survey saw a rise in immediate spending intentions.
It is interesting to note that although the overall consumer confidence index has risen, the number of respondents who believe the country is in an economic recession has also increased since last quarter, reaching 71%.
Only 26% of Pakistani’s believe the country will be out of an economic recession in the next 12 months, and therefore their spending and saving habits have been negatively impacted.
Consumer confidence drops
Close to 69% of consumers also admitted to changing their spending to save on household expenses, and the biggest cost-saving has been spending less on new clothes (39%).
“The findings of the consumer confidence reflect a favourable atmosphere in Pakistan. The set of factors that influence the confidence levels of Pakistani consumers goes beyond economics and business, and is reflective of improved security conditions, increased energy availability and low inflation rates,” said the survey.
“China-Pakistan Economic Corridor (CPEC) has also led to a higher activity in large-scale manufacturing and construction, opening more investment opportunities,” said Nielsen Pakistan Managing Director Quratulain Ibrahim. “We hope to see this optimism among Pakistani consumers during the coming months.”