Pakistan’s consumer confidence rises in October despite job concerns

KARACHI: Pakistan’s consumer confidence showed a slight improvement in October, reflecting cautious optimism among households despite growing concerns about job security and income stability, according to the latest survey by the State Bank of Pakistan (SBP).

The Consumer Confidence Index (CCI) climbed to 40 points in October from 37.7 points in September, signalling a modest uptick in public sentiment toward the economy. While the index still remains below the neutral level of 50, the rise suggests that consumers are gradually regaining faith in the country’s economic direction.

However, the picture is not entirely bright. The survey revealed that inflation expectations eased slightly to 21.2 points in October from 22.5 points a month earlier, indicating that people expect prices to rise at a slower pace. At the same time, unemployment concerns inched higher, with the related index increasing to 70.5 points compared to 70.1 in September, suggesting persistent unease over job prospects.

Expected income levels also took a hit, falling to 45.8 points from 49 in the previous month. Analysts believe this dip reflects households’ continued struggle with stagnant wages and limited job opportunities, despite signs of improving macroeconomic indicators.

The SBP’s Consumer Confidence Index measures how people feel about their personal finances and the overall economy. Scores above 50 represent optimism, while readings below that mark show a more pessimistic outlook. The survey captures both current conditions, assessing changes over the past six months, and expectations for the next six months.

The latest figures point to a mixed picture, where consumers are slightly more hopeful about the broader economy but remain wary about their own financial situations.

The modest improvement in consumer confidence comes as the government continues efforts to stabilise inflation, strengthen the rupee, and boost investor sentiment ahead of upcoming policy reviews. Whether this fragile confidence translates into higher spending or sustained optimism, however, will depend on how effectively economic gains reach ordinary citizens in the months ahead.