Pakistan consumer confidence has suffered its sharpest single-cycle decline in recent years. The Consumer Confidence Index (CCI) fell 24.4% to 65.3 in the third quarter of FY2026, down from 86.4 in the previous quarter, according to a report released by Dun & Bradstreet Pakistan and Gallup Pakistan.

The index measures public perceptions of the economy and personal finances. It covers four key areas: household finances, national economic conditions, unemployment and savings.

The latest results point to growing financial pressure across households. Meanwhile, both current sentiment and expectations for the future weakened during the quarter.

Current Consumer Sentiment Drops Sharply

The current sentiment index fell to 51.8, highlighting increasing financial difficulties among consumers. The future outlook index also declined, reaching 78.7.

Consequently, the findings suggest that pessimism is not limited to expectations about the coming months. Many consumers are already experiencing financial pressure.

Gallup Pakistan Executive Director Bilal Gilani described the 65.3 reading as being firmly in extremely pessimistic territory.

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He said the current sentiment figure shows that people are facing difficulties today, rather than simply worrying about future conditions.

Inflation and Unemployment Drive Pessimism

Inflation remains the biggest concern for consumers. About 89.3% of respondents said prices of essential goods had increased during the previous six months.

Unemployment has also become a major source of pressure. Around 81% of respondents said joblessness had worsened over the same period.

Additionally, household financial expectations remain weak. Nearly 40% of respondents expect their personal finances to deteriorate further over the next six months.

As a result, the combination of rising prices, limited employment opportunities and weaker household finances continues to weigh on consumer confidence.

Older Consumers See Steepest Decline

The decline in confidence varied significantly by age group. Consumers aged 50 and above recorded the sharpest fall, with confidence dropping 30.4%.

Younger respondents under 30 experienced a less severe decline. However, their confidence also remained considerably lower than in the previous survey.

The findings indicate that economic concerns are affecting different age groups, although older consumers appear to be facing the greatest deterioration in sentiment.

Businesses Face a Critical Consumer Signal

Zubair Qureshi, Chief Business Officer at Dun & Bradstreet Pakistan, said consumers are currently under significant pressure.

He stressed that confidence is unlikely to recover without visible improvements in economic conditions. According to Qureshi, businesses and policymakers can use the findings to assess risks and prepare for the months ahead.

Ultimately, the latest CCI reading highlights the growing challenge facing Pakistan’s economy. Consumer confidence will depend heavily on whether inflation and unemployment pressures begin to ease.