Consumer confidence in Pakistan fell to a two-year low during the third quarter of FY2026, according to the latest Consumer Confidence Index (CCI) released by Dun & Bradstreet Pakistan and Gallup Pakistan.

The index dropped to 65.3, down from 86.4 in the previous quarter. That represents a 24.4% decline and marks one of the sharpest falls in consumer sentiment in recent years.

The 20th edition of the CCI measures both consumers’ current financial conditions and their expectations for the economy. However, both indicators weakened during the quarter.

The current sentiment index fell to 51.8, while the future outlook stood at 78.7. Although consumers remain more hopeful about the future than their current situation, both readings declined from the previous quarter.

Inflation Remains the Biggest Concern

The survey showed that inflation remains the biggest source of pressure for Pakistani households.

The Q3 FY2026 survey covered 1,592 respondents across the country. Among them, 89.3% said prices of essential goods had increased during the previous six months.

Meanwhile, unemployment emerged as another major concern. Around 81% of respondents said joblessness had worsened over the same period.

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Household financial expectations also weakened. Nearly 40% of respondents expect their personal finances to deteriorate further over the next six months.

As a result, consumers are facing pressure from both rising living costs and concerns about employment.

Consumer Pessimism Deepens

Gallup Pakistan Executive Director Bilal Gilani said the latest reading places Pakistan in an extremely pessimistic position.

He described the 65.3 reading as the sharpest single-cycle decline recorded by the index in recent years.

More importantly, Gilani noted that the decline extends beyond expectations about the future. The current sentiment index has fallen to 51.8, suggesting that households are already experiencing significant financial pressure.

Therefore, the latest figures point to a broader deterioration in consumer confidence rather than concerns limited to future economic conditions.

Older Consumers See Sharpest Decline

The decline in confidence was not evenly distributed across age groups.

Respondents aged 50 and above recorded the steepest decline, with confidence falling by 30.4%.

Younger respondents also became less optimistic. However, people under 30 experienced a comparatively smaller decline than older consumers.

Nevertheless, confidence among younger respondents remained significantly below the level recorded in the previous survey.

The figures indicate that economic uncertainty is affecting consumers across different age groups, although older households appear to be facing a sharper deterioration in sentiment.

Businesses and Policymakers Face New Challenges

Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, said the figures demonstrate the pressure consumers are facing.

He stressed that confidence is unlikely to recover without visible improvements in economic conditions.

In addition, Qureshi said businesses and policymakers can use the findings to assess risks and plan for the months ahead.

The latest CCI reading could therefore become an important indicator for companies monitoring consumer demand and household spending.

Ultimately, the sharp decline highlights the impact of inflation, unemployment and financial uncertainty on consumer sentiment in Pakistan. A sustained improvement in household conditions will likely be crucial for restoring confidence in the coming quarters.