A trader counts Pakistani rupee notes at a currency exchange booth in Peshawar, Pakistan December 3, 2018. REUTERS
Consumer confidence in Pakistan fell sharply in the first quarter of FY2025-2026, reflecting caution among households, although overall sentiment remains stronger than last year. The consumer confidence index fell 86.4 from 96.2 in the previous quarter, a decrease of 10.2%. Compared to the same period last year, when it stood 72.9is the index up 18.5%indicating that a 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. The report was prepared by D&B Pakistan in collaboration with Gallup Pakistan and captures perceptions of current economic conditions, future expectations, household finances, employment, savings and inflation.
Based on a telephone survey of 2,132 respondents with a margin of error of ±2.2%, the report highlights key changes in confidence compared to the previous quarter and the same period last year, offering an independent, data-driven pulse of consumer sentiment in Pakistan.
The decline was driven by worsening current conditions. The current sentiment index fell 74.7and entered the extremely pessimistic range while the outlook index eased 98.2 but remained close to neutral. This suggests that households still expect some stability in the coming months.
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Consumer sentiment reflects strong concern over rising prices, with 84.3% of individuals reporting that grocery prices have increased in the past six months, underscoring the persistent effect of inflation. The net price indicator declined 67.6 to 32.8 amid sustained inflationary pressures from fuel, energy and currency weakness.
Consumers showed lower confidence in the current employment situation, with it 56.5 net indicator points to a widespread perception of strain on the labor market. Confidence in future job prospects also weakened, underscoring widespread concern about labor market conditions.
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Despite these challenges, households remain relatively optimistic about their finances. Sore 61.6% expect their financial situation to improve or remain unchanged while the net household income indicator stood at 108.1with approx 63% predict income growth or stability. Savings sentiment remained muted with an aggregate net indicator on 81.3which reflects limited disposable income.
The steepest declines in confidence were observed among urban dwellers and those aged 30 to 49, whose index fell 24-27%. Younger respondents under 30 remained relatively more optimistic, particularly about future income prospects.
