Consumer Confidence Improves In Q4 2020: Report
Sumaira FH 13 days ago Tue 23rd February 2021 | 05:19 PM
The Consumer Confidence Index remained 90.3 points in the fourth quarter of 2020, compared to 88.7 points in Q3 2020 ; showing 1.8% quarter-on-quarter increase
KARACHI, (UrduPoint / Pakistan Point News - 23rd Feb, 2021 ) :The Consumer Confidence Index remained 90.3 points in the fourth quarter of 2020, compared to 88.7 points in Q3 2020 ; showing 1.8% quarter-on-quarter increase.
This was driven by the improvement in current situation up by 14.9% quarter-on-quarter. This was magnified by a recovery from a low base as sentiments were severely dampened during the past 6 months due to COVID-19, said survey report by Dun & Broadsheet Pakistan, and Gallup Pakistan here on Tuesday.
In contrast, future Expectations deteriorated for the first time since Q1 2020 due to cautious optimism by individuals because of prevailing uncertainty amid resurgence in COVID-19 cases. Moreover, the overall consumer confidence in Pakistan has remained pessimistic in all four quarters of 2020.
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 i.e., household financial situation, country's economic condition, unemployment, and household savings. The index is a reflection of the current situation (economic changes felt in the last six months), as well as the future expectations (changes expected for next 6 months) of consumers across the country.
The CCI ranges from 0 to 200, with 100 as the neutral value. A score of less than 100 indicates pessimism.
During this survey, optimism has improved for household financial situation, country's economic situation and unemployment, while it has declined for household savings. This is primarily attributed to consumers' concerns about future household savings. This could have a cascading effect on asset related investments in the country, and overall spending by consumers.
Perceptions about the country's economy have improved consistently across all four quarters of 2020, highlighting upbeat consumer sentiments. Household financial situation was the most optimistic parameter, implying people's household income seems to be rising after a decline due to COVID-19.
During Q4, household financial situation was the only CCI parameter to turn overall optimistic owing to improvement in current situation. While 33% consumers believe that their income levels will improve in the next 6 months in Q4 compared to 30% in Q3, 28% in Q2 and 32% in Q1.
On the whole, consumers across the country and different age groups were relatively more optimistic for current economic situation, than they were during Q3 2020 survey.