December 09, 2021 (MLN): The Consumer Confidence Index (CCI) decreased by 19.6% QoQ in Q3 2021 compared to Q2 2021 (NI = 70.8), indicating deteriorating consumer sentiments, the findings of the CCI survey for Q3 2021, conducted by Gallup Pakistan and Dun & Bradstreet, revealed on Wednesday.
Meanwhile, the sentiments regarding future expectations declined more sharply by 22.7% QoQ (NI = 81.4) compared to a 14.9% QoQ decline in the current situation (NI = 60.2). Nearly two-third of Pakistanis feel that their household’s financial situation will either worsen or will have no improvement in the next six months.
Perceptions about the country’s economic situation witnessed the largest decline across all parameters by 24.1% Q-o-Q (NI = 73.9). Consumers remained most concerned about the rising unemployment situation. Overall NI witnessed a 21.6% decline QoQ (NI = 54.1) in Q3 2021.
In addition, the rising prices continued to be a concern for consumers (NI = 14.5), decreasing by 27% Q-o-Q in Q3 2021.
The CCI ranges from 0 to 200, with 100 as the neutral value. A score of less than 100 indicates pessimism while a score of more than 100 indicates optimism.
Unemployment continues to drag consumers’ enthusiasm and remained the most pessimistic parameter as it recorded the lowest NI across all CCI parameters since inception. Overall NI witnessed a 21.6% decline; 54.1 in Q3 2021 from 69.0 in Q2 2021 68% of respondents highlighted that unemployment will increase in the next six months compared to 43% in Q2 2021.
As per the report, the decline was witnessed across all future and current parameters of the CCI. Recent weakening in macroeconomic indicators such as rising inflation and currency depreciation have hurt consumer expectations; consumers are perceiving these declining indicators as signals for further deterioration in their personal and economic conditions.
To note, CCI is a globally recognized instrument that helps understand the sentiments and outlook of the common man. It measures the level of optimism that consumers have about the household financial situation, country’s economic condition, job prospects, personal finances, and spending intentions.
Thus, it would help multiple stakeholders to strengthen their research, develop their strategies, and thereby aid in the process of decision making.
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