Haq's Musings

Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics. Subjects include personal activities, education, South Asia, South Asian community, regional and international affairs and US politics to financial markets. For investors interested in South Asia, Riaz has another blog called South Asia Investor at http://www.southasiainvestor.com and a YouTube video channel https://www.youtube.com/channel/UCkrIDyFbC9N9evXYb9cA_gQ

Showing posts with label Consumer Confidence. Show all posts

Thursday, November 8, 2018

Pakistan Consumer Confidence Index Reached All-Time High in Q2/2018

Pakistan consumer confidence index reached an all-time high of 115 in Q2/2018, up 8 points from 107 in Q1/2018, according to latest The Conference Board Global Consumer Confidence Survey (TCB-Global). Pakistan now ranks 9th in the world. Pakistan's neighbor India's consumer confidence was measured at 124, down 6 points from prior quarter. India ranks 3rd in the world.

Global Consumer Confidence Ranking. Source: Nielsen

Here's an excerpt of the TCB-Global report on Pakistan:

"In Pakistan, consumer confidence has reached an all-time high of 115, following an 8-point increase. Consumers in Pakistan are increasingly optimistic about job prospects and their personal financial situation. However, it is uncertain whether the high level of confidence can be sustained in the future. Pakistan’s new government is likely to approach IMF for assistance to address the country’s worsening external balance, which might lead to significant fiscal and monetary tightening. This, along with rising consumer prices, will pose major challenges to consumer confidence post-election."

The survey indicates that Pakistan's domestic economy remains strong in spite of the rising concerns about balance of payments. The new Pakistani government headed by PTI leader Imran Khan is reporting some successes in alleviating these concerns with help from Islamabad's friends in Beijing and Riyadh. Saudi Arabia has already pledged $6 billion in cash and deferred oil payments. Since returning from a trip to Beijing, Pakistan's Finance Minister Asad Umar has said "Pakistan's immediate balance of payment crisis is over". It's highly likely that Pakistan will seek yet another IMF bailout with conditions that will force spending cuts and cause economy to slow down this year. This will hurt consumer confidence.

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Tuesday, March 28, 2017

Nielsen: Pakistan Consumer Confidence Highest Since 2008

Consumer confidence index in Pakistan jumped five point from the prior quarter to reach 106 in Q4/2016, according to Nielsen’s global survey of consumer confidence for 63 countries released recently.

Source: Nielsen

Here's an excerpt of Nielsen's report Africa/Middle East region that includes Pakistan:

"Consumer confidence in the Africa/Middle East region declined in the fourth quarter, falling four points to 83, the lowest level in more than three years. Confidence was highest in United Arab Emirates, which held steady from the third quarter at 108. Pakistan was the only country where consumer confidence moved in a positive direction, rising five points from the third quarter to 106, the highest score for the country since it was added to the survey in 2008."

The share of Pakistani respondents worried about job security dropped to 21%. 51% of Pakistanis said they are optimistic about better job opportunities in the next 12 months, according to the survey.

“The findings of the consumer confidence reflect a favorable atmosphere in Pakistan. The set of factors that influence the confidence levels of Pakistani consumers goes beyond economics and business, and is reflective of improved security conditions, increased energy availability and low inflation rates,” reported the survey.

“China-Pakistan Economic Corridor (CPEC) has also led to a higher activity in large-scale manufacturing and construction, opening more investment opportunities,” said Nielsen Pakistan Managing Director Quratulain Ibrahim, according to Pakistan's Express Tribune newspaper. “We hope to see this optimism among Pakistani consumers during the coming months.”

Pakistani banks have boosted lending to businesses and consumers. Large-scale manufacturing sector borrowed Rs. 225 billion in 2016, up from Rs 119 billion in 2015. Consumer loans have jumped from Rs. 29 billion in 2015 to Rs. 70 billion in 2016. Auto financing soared 32% to Rs 30.7 billion in 2016, according to the State Bank of Pakistan as reported by Daily Times.

Pakistani consumers and businesses are feeling increasingly confident with improved overall security, rising foreign and domestic investments and better employment prospects. They are earning, borrowing and spending more to further stimulate the economy thereby creating a virtuous cycle. Low oil prices and relatively subdued inflation are also helping. It's now up to Pakistan's political, economic and military leadership to maintain this growth momentum.

Related Links:

Haq's Musings

Pakistan's Economy and Security in 2016

Credit Suisse Global Wealth Report 2016

Pakistan's Middle Class Larger and Richer Than India's

Pakistan Translates GDP Growth to Citizens' Well-being

Rising Motorcycle Sales in Pakistan

Depth of Deprivation in India

Chicken vs Daal in Pakistan

China Pakistan Economic Corridor

ADB Raises Pakistan GDP Growth Forecast

Friday, August 1, 2014

Strong Eid Sales Confirm Nielsen's Consumer Confidence Data on Pakistan

Eid and Ramzan sales, making up over 40% of annual revenue of retailers in Pakistan, are estimated to have jumped 10-15% this year, according to early data reported in the news media.

Nielsen, a global provider of data on consumers, reports that Pakistan consumer confidence has held steady at 99 for two consecutive quarters. This compares favorably with consumer confidence figures which declined over the previous quarter in the overall Middle East/Africa region. Among the region, UAE led the way for Middle East/Africa consumer confidence with an index of 109, a decline of five points from first-quarter 2014. Egypt (81) reported a drop of six points compared to the first quarter. South Africa posted the only regional confidence increase, climbing three points to 85, and confidence held steady in Saudi Arabia (102).

Global Consumer Confidence Index Report. Source: Nielsen

More than half (56%) of Middle East/ Africa respondents in Nielsen consumer surveys viewed their personal finances in a positive light which held steady from the first quarter. In Pakistan, 59 percent of the respondents believed the state of their finances was good or excellent, up from 57 percent in the first quarter of this year.

“Pakistani consumers are generally optimistic as seen by mostly high consumer confidence scores over the last three years. However, a score of 99 in the first as well as the second quarter of this year, is the highest we’ve seen since the second quarter of 2011,” said Mustafa Moosajee, Managing Director, Nielsen Pakistan. “This reflects the overall mood in the country, especially relating to economic conditions. The economy is showing signs of recovery but macro challenges remain.”

Pakistan's Nielsen consumer confidence index of 99 is just below 100, a level that indicates optimism. Countries at or above 100 are: China (111), India (121), Indonesia (124), UAE (114), Philippines (111), Thailand (108), Brazil (106), Switzerland (104), Saudi Arabia (102), Peru (101), United States (100), Denmark (100) and New Zealand (100).

Consumer spending in Pakistan has increased at a 26 percent average pace the past three years, compared with 7.7 percent for Asia, according to data compiled by Euromonitor International, a consumer research firm. Pakistan's rising middle class consumers in major cities like Karachi, Lahore and Islamabad are driving sales of international brand name products and services. Real estate developers and retailers are responding to it by opening new mega shopping malls such as Dolmen in Karachi and Centaurus in Islamabad.

Dolmen City, Clifton, Karachi

Here's a recent video of a CNN report on "British Brand Invasion" from Dolmen Mall in Clifton district of Karachi:

http://edition.cnn.com/video/#/video/world/2013/04/01/mohsin-bristish-brands-in-pakistan.cnn

Pakistan has continued to offer much greater upward economic and social mobility to its citizens than neighboring India over the last two decades. Since 1990, Pakistan's middle class had expanded by 36.5% and India's by only 12.8%, according to an ADB report titled "Asia's Emerging Middle Class: Past, Present And Future.