Understanding consumer vs business confidence
Latest surveys suggest that Pakistani consumers remain markedly more pessimistic than businesses. A gap between consumers and business sentiment is not unusual, as the two experience and access the economy differently. But if these surveys are credible indicators, the widening divergence warrants closer scrutiny and explanation from policymakers, economists and business leaders. The September…
Latest surveys highlight a significant gap in economic confidence between Pakistani consumers and businesses. The State Bank of Pakistan and Institute of Business Administration's latest figures show the State Bank-IBA Confidence Index at 49.1 compared to the Ipsos Consumer Confidence Index at 33.6. This divergence could stem from varying interpretations of economic indicators, differences in trust in government, or fundamental disparities in economic realities.
Dr. Durre Nayab, Director of Socioeconomic Insights and Analytics, suggests this gap may be a measurement artifact, noting the different scales and historical performance of the two indices. She also points out that the Ipsos index includes a slightly positive trend, with 24% of respondents believing the country is on the right track.
Business analyst Nasim Beg attributes the contrast to differing perspectives and experiences, with businesses focusing on future outlooks and consumers reacting more directly to their current economic conditions. Ehsan Malik, former CEO of the Pakistan Business Council, emphasizes that businesses have more options to cope with economic changes, while consumers must absorb higher costs.
Industrialist Majyd Aziz highlights the impact of income stagnation, inflation, and limited purchasing power on consumer sentiment. Despite some macroeconomic stabilization, Aziz stresses that confidence will improve only when it translates into secure jobs, higher real incomes, and more affordable essentials. The survey's optimism should be weighed against the ongoing challenges faced by ordinary consumers.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
