Pakistani consumer confidence surges: Ipsos survey

KARACHI: In a year marked by fluctuating economic and social conditions, Pakistan’s consumer confidence has experienced a remarkable shift, according to the latest survey by research company Ipsos.

The quarterly Consumer Confidence Index (CCI), conducted from November 11 to 30, reveals a surge in optimism about the country’s future, despite persistent concerns over inflation and unemployment.

For the first time in nearly three years, 19 per cent of Pakistanis believe the country is headed in the right direction, up significantly from just 11 per cent in Q3 2024.

Pakistanis have long been troubled by inflation, which had reached a peak in 2023, but Q4 2024 marks a significant easing in economic anxiety. The share of people citing inflation as their primary concern has dropped by 16 percentage points, now standing at 69 per cent. This is the lowest level of inflationary worry in the past 3.5 years, reflecting a temporary respite in the country’s soaring living costs.

The survey also indicates a shift in attitudes towards the economy itself. While only 12 per cent of respondents rated the economy as ‘strong’, the proportion of those who view the economy as ‘weak’ has steadily decreased from 76 per cent in September 2023 to 65 per cent in December 2024. More than one-third of respondents now believe the country’s economic condition is moderate, signalling a cautious optimism that has replaced the pervasive pessimism of previous years.

In tandem with improving economic outlooks, Pakistanis are reporting greater comfort in making everyday purchases. Compared to a year ago, 7.0 per cent of respondents feel more at ease with household shopping. This marks a six percentage points recovery from September 2023. Per the survey, Pakistan has surpassed Turkiye in rankings for the first time in two years a positive change (1.2 pts) in the Global Consumer Confidence Index.

Looking ahead, there is a growing expectation for improvement. One in five Pakistanis anticipate stronger economic conditions in their local area within the next six months, with males and middle- to lower-income groups exhibiting a more positive outlook than wealthier segments. This marks a sharp contrast to the deep scepticism observed in the past year, underscoring a shift in the national mood.

However, despite optimism in some sectors, there are still areas of concern. The confidence to make major purchases, such as buying homes or cars, has remained low, with only 4.0 per cent of respondents feeling comfortable making such decisions. Similarly, confidence in long-term savings, including for retirement or children’s education, has slightly improved, but only 14 per cent of Pakistanis express increased confidence in their ability to invest for the future.

Confidence in the job market has remained steady, with 15 per cent of respondents expressing no concern about their employment status. The survey found that a significant proportion of Pakistanis -- 85 per cent -- still feel uncertain about their job prospects, indicating a cautious approach to economic recovery.