KARACHI: The latest edition of a widely used index of consumer confidence in Pakistan showed on Thursday the benchmark rose 8.8 per cent on a quarterly basis for October-December.

According to the Pakistan Consumer Confidence Index (CCI) released by Dun & Bradstreet Pakistan and Gallup Pakistan, the benchmark increased to 77 points from 70.8 points recorded in the preceding quarter.

This improvement in sentiment is driven primarily by future expectations, a press release said. Survey respondents reported a greater increase in “future expectations,” which went up 13.6pc. In contrast, the “current situation” rose 2.3pc in the quarter under review.

The overall increase primarily stemmed from improved perceptions regarding “household savings” (up 16.3pc).

Unemployment continued to drag consumers’ enthusiasm and remained the most pessimistic parameter. Across all parameters, consumers were only optimistic regarding “future financial situation”. In the fourth quarter, 91pc consumers believed that daily essentials continued to become expensive/very expensive in the last six months versus 94pc in the preceding quarter.

The CCI report has been developed by assessing consumers’ confidence about the economy as well as their personal financial situation. The index covers four key parameters: household financial situation, country’s economic condition, unemployment and household savings.

The CCI ranges from zero to 200, with 100 as the neutral value. A score of less than 100 indicates pessimism while a score of more than 100 indicates optimism.

Published in Dawn, February 25th, 2022