Pakistan’s consumer confidence declined sharply during the third quarter of the current financial year, with rising prices and concerns about employment weighing on household sentiment despite indications of broader macroeconomic stability. The Consumer Confidence Index (CCI), compiled by Dun & Bradstreet Pakistan and Gallup Pakistan, fell to 65.3 in the third quarter of FY2026 from 86.4 in the previous quarter. The 24.4% decline pushed the index to its lowest level in two years, highlighting growing pressure on households and a weaker perception of economic conditions among consumers.
The latest reading came from the 20th edition of the Consumer Confidence Index and was based on a survey of 1,592 respondents. The survey showed deterioration in both perceptions of current economic conditions and expectations for the months ahead. While the overall index recorded a substantial decline, the results also indicated a clear difference between how households view their present financial and economic situation and how they assess the future. The decline in consumer confidence suggests that concerns affecting household finances continue to influence perceptions of the economy, even as some wider economic indicators show signs of stability.
The current sentiment index dropped to 51.8 during the quarter, reflecting weaker perceptions of prevailing economic conditions. At the same time, the future expectations index declined to 78.7. Despite the decline, the future expectations reading remained considerably higher than the current sentiment index, indicating that respondents continued to hold relatively stronger expectations about conditions in the months ahead compared with their assessment of the present situation. The difference between the two readings points to a more cautious household outlook, with current economic pressures having a stronger effect on sentiment than expectations regarding the future.
The Consumer Confidence Index measures household perceptions across four major areas: household financial conditions, national economic conditions, unemployment and savings. These factors provide an indication of how consumers assess their personal financial position as well as the wider economic environment. The latest survey showed that concerns surrounding these areas have become more pronounced, with inflation emerging as the most widespread issue among respondents. The findings suggest that the cost of essential goods remains a major factor shaping household perceptions and influencing how consumers view their current economic circumstances.
Inflation was identified as the most significant concern in the survey, with approximately 89.3% of respondents reporting that they had experienced increases in the prices of essential goods during the previous six months. The high proportion of respondents reporting higher prices indicates the extent to which rising costs are affecting households across the country. For consumers, increases in the prices of essential goods can place additional pressure on household budgets, leaving less room for savings and other expenditures. The survey results therefore reflect the direct impact that price increases are having on consumer perceptions of financial conditions.
Concerns about unemployment also contributed to the deterioration in consumer confidence, adding to the pressure created by higher prices. Household sentiment is influenced not only by current income and expenses but also by expectations regarding employment and financial security. When consumers face uncertainty over job opportunities or income stability, their assessment of economic conditions can weaken even when broader indicators point toward improved stability. The combination of inflation and employment concerns has therefore emerged as an important factor behind the latest decline in the Consumer Confidence Index.
The latest results underline the challenges facing household sentiment in Pakistan as consumers continue to deal with higher essential costs and concerns over employment. Although the future expectations index remained significantly above the current sentiment reading, the overall decline in consumer confidence indicates that households remain cautious about their financial circumstances and the wider economy. The 65.3 reading, representing the lowest consumer confidence level in two years, reflects the growing effect of inflation and job related concerns on household perceptions during the third quarter of FY2026.
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