The Consumer Confidence Index (CCI) in Pakistan declined by 1.8% to 34.9 points in November 2024, reflecting a deterioration in public sentiment regarding the economy, according to the latest survey report released by the State Bank of Pakistan (SBP).
The CCI serves as a key economic indicator that gauges consumers’ perceptions about their personal financial situation and the overall state of the economy. It is derived from responses gathered through nationwide surveys and is measured on a scale of 0 to 100. A reading above 50 signals optimism, while a score below 50 indicates a prevailing sense of pessimism.
The index is broken into two key components. The sentiments regarding the state of the economy over the past six months, and expectations for the economy in the next six months.
In November, the Current Economic Conditions (CEC) index declined by 2.55% to 33.6 points, while the Expected Economic Conditions (EEC) index fell by 1% to 36.2 points, reflecting consumer concerns about both past and future economic performance.
The survey also highlighted rising inflation expectations, which surged 3% to 70.5 points—an indication that consumers anticipate higher price pressures in the coming months. Concerns regarding unemployment also grew, with the corresponding index rising by 2.1% to 72.3 points, signalling widespread worry about job security over the next six months.
Furthermore, the report noted an increase in expectations for interest rates, which climbed 1.6% to 59.2 points. This indicates that consumers foresee borrowing costs remaining elevated or rising further, which could add pressure on household finances and economic activity.
