Consumer Confidence Index rises by 10.3% in 1QFY23: D&B report

October 12, 2023 (MLN): The overall Consumer Confidence Index (CCI) In 1QFY23 was 63.5, which indicates an increase of 10.3% QoQ, the latest CCI survey report issued by Dun & Bradstreet Pakistan (D&B) showed.

The report highlighted the significance of this ascent, as it stood at -11.9% during the fourth quarter of the previous year.

This increase in the overall CCI in 1QFY23 can be attributed to relatively less pessimism, indicating an improved outlook across most parameters.

The increase is reflected in three parameters of the CCI.

Except for Unemployment, all parameters showed improvement in consumer confidence with significant increases.

In the case of the Unemployment parameter, the overall and future components reflect a deterioration of sentiments, however, the current component displayed a relative decrease in pessimism i.e., an improvement of 6.9% when compared to the previous quarter.

The current outlook on the financial situation and household savings parameters increased from 62.9 to 77.9 and 46.7 to 57.6 respectively.

Moreover, the current outlook on the economic situation and unemployment parameters increased from 48.9 to 65.5 and decreased from 54.4 to 52.8 respectively.

Rising prices and household income have always been a concern. However, moving from 6.9 to 24.3 and 87.2 to 100.2 respectively indicates relative improvement in sentiment.

To note, the CCI had been on a continuous decline for the last four quarters and has now finally picked up in Q1 2023.

This deterioration in the last four quarters’ CCI is reflected by a decrease in confidence across all parameters of the index.

The report attributed this to the overall worsening economic condition and outlook.

In this wave of the survey, consumers showed relatively lower pessimism about current and future economic prospects in comparison to Q4.

What is CCI?

The Consumer Confidence Index (CCI) is a survey that measures consumer sentiments about the country’s economic condition, household financial situation, job prospects, and personal finances.

The survey captures consumers’ responses related to the Current Situation as well as their Future Expectations.

Copyright Mettis Link News