Consumer confidence falls in Pakistan amid rising prices, unemployment

Consumer confidence in Pakistan fell sharply in the first quarter of FY2025–26, reflecting caution among households even as overall sentiment remains stronger than last year. The Consumer Confidence Index dropped to 86.4 from 96.2 in the previous quarter, a decline of 10.2%. Compared to the same period last year when it stood at 72.9, the index is up 18.5%, indicating that broader stabilization is holding despite short-term fluctuations.

The Pakistan Consumer Confidence Index (CCI) for Q1 FY2025-26, released in December 2025, provides a comprehensive assessment of household sentiment across the country. Prepared by D&B Pakistan in collaboration with Gallup Pakistan, the report captures perceptions of current economic conditions, future expectations, household finances, employment, savings, and inflation.

Based on a telephonic survey of 2,132 respondents with a ±2.2% margin of error, the report highlights key shifts in confidence compared to the previous quarter and the same period last year, offering an independent, data-led pulse of consumer sentiment in Pakistan.

The decline was driven by worsening current conditions. The present sentiment index fell to 74.7, entering the extremely pessimistic range, while the future outlook index eased to 98.2 but remained close to neutral. This suggests households still expect some stability in the months ahead.

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Consumer sentiment reflects strong concern over rising prices, with 84.3% of individuals reporting that everyday item prices have increased in the past six months, underscoring the ongoing impact of inflation. The net indicator for prices plunged from 67.6 to 32.8 amid persistent inflationary pressures from fuel, energy, and currency weakness.

Consumers showed lower confidence in the current employment situation, with the 56.5 net indicator pointing to a widespread perception of labor market strain.Confidence in future job prospects also weakened, highlighting widespread worry over labor market conditions.

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Despite these challenges, households remain relatively optimistic about their finances. About 61.6% expect their financial situation to improve or remain unchanged, while the household income net indicator stood at 108.1, with roughly 63% anticipating income growth or stability. Savings sentiment remained subdued with an overall net indicator of 81.3, reflecting limited disposable income.

The steepest drops in confidence were observed among urban residents and those aged 30 to 49, whose indices fell 24–27%. Younger respondents under 30 remained comparatively more optimistic, particularly regarding future income prospects.