Consumer Confidence Index increases by 20.9%

ISLAMABAD: The overall Consumer Confidence Index (CCI) recorded a substantial increase of 20.9 percent during the second quarter of FY2024-2024, Gallup & D&B Quarterly Consumer Confidence report stated.

“If compared with previous quarter’s score of 72.9, CCI improved to 88.1 points during Q2 FY2024-25. While consumer confidence remains optimistic across all cycles, upward trend can be attributed primarily to a decline in inflation and an increase in GDP growth,” the report said. Bilal Gilani, Executive Director of Gallup Pakistan, said the CCI score is higher than it has been for the past seven quarters. Reduction in inflation rate, relative stability in macroeconomic indicators such as exchange rate, and relative political stability explains this continued rise in CCI.

Household Financial Situation has also demonstrated notable improvement, registering a 27.5pc increase compared to preceding quarter. Additionally, more than half of respondents expect their household finances to improve in the future.

Similarly, perceptions of Country’s Economic Condition have strengthened, with approximately 48pc of participants expressing optimism the economic outlook will either improve or remain stable. Consumer sentiments regarding Employment Opportunities and Household Savings remain positive.

Dun & Bradstreet Pakistan, in collaboration with Gallup Pakistan, has released 17th edition of Pakistan Consumer Confidence Index (CCI) Q2 FY2024-25. The report assessed consumer confidence regarding both overall economic environment and individual financial conditions, based on interviews conducted in December 2024.

“There is an undeniable increase in consumer confidence as per this report. Both current and future expectations have improved. The increase is also across the board in terms of geography and demography of Pakistan,” Bilal Gilani said.

He said rise of CCI is consistent with general business confidence increase as measured by Gallup, but also by likes of S&P and a recent PWC report. The relative improvement in CCI, however, would only be sustained if there is growth in the economy, he added.