Pakistani consumer confidence lowest in six months: report

[Naveed Yaseen]

By Faryal Najeeb
KARACHI: Seventy-three per cent of Pakistani consumers think their country is currently in recession and consumer confidence worldwide has fallen to its lowest level in several years, according to the Nielsen Global Consumer Confidence Index, which measures consumer confidence, major concerns and spending habits in 51 countries.

In a report issued by the organisation, the latest Nielsen Consumer Confidence Index dropped to 88, down six points in the last six months, the largest single drop the index has recorded in the last three years.

The report stated that no country has been spared the domino effect of the US sub-prime and credit crisis and hence, Pakistanis too joined ranks with their regional and global brethren in facing and combating the same universal economic concerns.

The report listed the concerns as increased oil and commodity prices, increasing inflation, failing local industrial production, persistent unemployment along with political crisis, leaving consumers not only with a dwindling budget per month, but also dwindling confidence in the economy too.

Pakistan managed a top position when consumers were asked about their concerns for migration. With only UK and Italy in the lead, Pakistan came in third, with 12 per cent of respondents saying immigration was their top concern, the publication stated.

Another major consumer concern of Pakistan was the lack of political stability, which earned Pakistan 4th place after Turkey, Venezuela and Thailand securing the top positions. 11 per cent of Pakistani respondents felt that political stability was their chief concern.

However, this small group (11pc) turned into an astonishing faction (50pc), who felt that political stability will be the main culprit if the economy sees a turndown.

The report further noted that concerns for immigration, political stability and terrorism did not deter the spirit of emerging shopper-tainment culture, as 5 per cent of Pakistani respondents placed Pakistan at the 5th position when asked how they felt about acquiring goods they need over the next year.

Even if the country is not officially in recession and has not recorded two quarters of negative growth, the snowball effect of the credit crunch and rising inflation has taken its toll. And officially or otherwise, they certainly feel like they’re in recession, the report stated.

http://www.thenews.com.pk/daily_detail.asp?id=119220