KARACHI: After showing a strong upward trend for about eight years, consumer confidence index in Pakistan has dropped by three points to 101 in the third quarter (Jul-Sep) of 2016, according to the latest survey.
The results are part of the Global Survey of Consumer Confidence and Spending Intentions, which is conducted by Nielson, a global performance management company that provides a comprehensive understanding of what consumers want and buy.
‘Pakistan Development Update’: World Bank projects economy will grow at 5%, miss govt target
Pakistan’s consumer confidence index, which maintained its highest levels in the first two quarters of 2016, has now dropped to 101 from 104 in the third quarter, according to a report compiled by Nielsen.
One of the confidence indicators remained flat while the other two slumped as compared to the previous quarter, causing a decline in the index. Outlook for jobs remains unchanged at 47% while personal finance sentiment was down by four percentage points (64%) and immediate spending intentions (44%) dropped one percentage point from the previous quarter.
Job security was the biggest or second biggest concern for 34% of Pakistan respondents. This was followed by concerns for parents’ welfare and happiness (24%), which was up three percentage points from the second quarter as well as worry about work/life balance (22%) and children’s education and/or welfare (22%); both concerns showed no change from the last quarter.
“The latest findings reveal that recessionary sentiment has lessened, however, the escalation of domestic and geopolitical issues have taken its toll on consumer confidence,” Nielsen Arabian Peninsula and Pakistan Managing Director Arslan Ashraf said.
Despite the current developments, consumers are still optimistic about the economy and Pakistan is amongst the 16 countries globally to reach or exceed the optimism benchmark, according to a press release. The third-quarter online survey was conducted August 10 to September 2, 2016 and the findings in this survey are based on an online methodology in 63 countries.
Pakistan’s economy is out of danger, says IMF chief
In Asia-Pacific, consumer confidence scores ranged from a high of 133 to a low of 46, with similar divergent scores in Europe (from 107 to 50), Latin America (from 104 to 57) and Africa/Middle East (from 108 to 70). In North America, however, confidence scores were more closely aligned in the US (106) and Canada (97).
Global consumer confidence increased one point from the second quarter to a score of 99. Confidence gains were seen throughout most measured markets in Asia-Pacific, Latin America and Europe.
Courtesy : Express Tribune