Consumer confidence and expectations are widely recognized as leading indicators of economic activity, with significant influence on business sentiment, household behavior, and overall macroeconomic conditions. These expectations - rooted in consumers' perceptions of the present - are particularly relevant for shaping the outlook for inflation, interest rates, and employment. As such, many countries integrate consumer surveys into their policy and research frameworks.

In Pakistan, the State Bank of Pakistan (SBP), in collaboration with the Institute of Business Administration (IBA) Karachi, conducts the Consumer Confidence Survey (CCS) at the national level. The survey captures household sentiment and expectations, which are compiled into current, expected, and overall confidence indices.

Since its launch in 2012, the CCS has undergone several enhancements, most notably transitioning to a monthly frequency in January 2023 to enable more timely assessments of public sentiment. To further enhance its effectiveness and align it with evolving international practices, a comprehensive review and internal testing of the questionnaire was undertaken recently. As a result, two key changes are introduced from July 2025: the quantitative inflation expectations question is shifted from a rupee-based format to one that captures percentage change in price levels, and the reference period for consumers' expectations and sentiments is extended from six months to twelve months. These improvements are expected to reduce volatility in important survey indices while facilitating meaningful interpretation and comparison with results of similar surveys.