Consumer confidence falls by 24% to 2-year low

Survey shows country has entered 'extremely pessimistic territory' as inflation, unemployment bite

KARACHI:

Consumer confidence in Pakistan has suffered its sharpest single-cycle drop in recent years, with the Consumer Confidence Index (CCI) falling 24.4% to 65.3 in the third quarter of FY26, down from 86.4 in the previous quarter, according to a statement issued on Thursday.

The index, released by Dun & Bradstreet Pakistan and Gallup Pakistan, tracks consumer perceptions of the economy and personal finances across four parameters: household financial situation, national economic conditions, unemployment and savings. The report highlights a two-fold view of consumer sentiment. The current sentiment index dropped to 51.8, while the future outlook stood at 78.7 – both lower than the previous quarter.

Inflation remains the dominant concern, with 89.3% of respondents reporting price hikes for essential goods in the last six months. Unemployment has also intensified as a source of strain, with 81% of respondents saying joblessness had worsened over the past six months.

Close to 40% of respondents expect their own finances to worsen further in the next six months, offering little relief on household sentiment.

"The Q3 2026 reading of 65.3 places Pakistan firmly in extremely pessimistic territory, the sharpest single-cycle drop we have recorded in recent years," said Bilal Gilani, Executive Director of Gallup Pakistan. "What stands out is that this isn't a crisis of expectations alone: the current sentiment index has fallen to 51.8, meaning people are not just worried about tomorrow, they are struggling today."

The pessimism was not evenly distributed. Respondents aged 50 and above showed the steepest drop in confidence, down 30.4%, while those below 30 showed a relatively less steep decline but were still much less optimistic than in the previous survey.

"These numbers show consumers are under real pressure right now," said Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan. "Confidence won't recover on its own; it will take visible improvement on both fronts before sentiment shifts. This is exactly the kind of signal businesses and policymakers need as they assess risk and plan for the months ahead."