Consumer confidence level remains positive
Latest BSP survey
The Bangko Sentral ng Pilipinas (BSP) said Filipinos’ consumer outlook remains in positive territory albeit in a lower confidence index (CI) compared to December, 2016’s record high numbers due to higher costs of goods and other household expenses as well as bad weather conditions and poor harvest results.
Based on the latest Consumer Expectations Survey (CES) for the first quarter 2017, the survey’s 8.7 percent CI is still the second highest from the previous data’s 9.2 percent. The CI, as explained by the BSP, is measured by the percentage of households that had an affirmative answer less than those that gave a negative response.
According to the BSP, the steady consumer outlook was due to these positive answers: Improvements in the peace and order situation; additional family income because of higher salary and stronger business activity; availability of more jobs and increase in the number of employed family members; and effective government policies.
The less than optimistic views were based on: Higher prices of goods and household expenditures; poor harvest; and unfavorable weather conditions.
“For the next quarter (April to June) and the year ahead, consumer confidence was less optimistic as the CIs declined but remained positive at 16.5 percent (from 18.8 percent) and 31.7 percent (from 33.4 percent), respectively,” said the BSP. The less favorable outlook were because of: higher prices of good; depreciation of the peso; poor harvest due to bad weather conditions; and slowdown in business activity.
The survey’s questions centered on three main factors – economic condition, family financial situation, and family income.
The BSP said consumer sentiment based on these factors were mixed for the first quarter tally. “Notably, record high CIs were posted on the outlook on the country’s economy and family financial situation (but) consumers views on family income was less optimistic.”
The outlook was also mixed among income groups with the low- and middle-income groups both have weaker outlooks for the first quarter while the high-income group was more positive.