44% of Filipinos feel economy will improve soon

MANILA, Philippines – A survey by a global market research firm Synovate said that 44 percent of Filipinos living in Metro Manila, North and South Luzon, Visayas and Mindanao believe that the economy is weak but will improve soon.

“Interestingly enough, Filipinos across the Philippines generally share a sentiment of renewed optimism and this is a good thing as it leads to a greater consumer confidence,” Carole Sarthou, managing director of Synovate in the Philippines.

“However, our results show that they have become more conscious when it comes to spending, with close to two thirds paying more attention to prices of food items before making a purchase and this trend may continue throughout the year,” Sarthou added.

The survey asked respondents if they had made changes in their monetary habits in the last six months. It revealed that Filipinos were saving less, investing less as well as generally spending less on luxury items.

“It’s no real surprise that Filipinos are cutting back on luxuries given the current economic climate. Our results show that only 12 percent of those living in Metro Manila admitted to spending more on luxury items versus the majority who tightened their purse strings when comes to premium and branded goods,” Sarthou said.

“On the other hand, we discovered that Filipinos were spending more on necessities with the biggest spenders coming from Metro Manila and South Luzon proving only that necessities outweigh luxury goods for the time being,” she added.

When it came to salaries and income, those living in Mindanao or 60 percent believed that they were earning more money than they did in the last six months while 40 percent of Filipinos in South Luzon said that they were taking home less money.

The economic pinch was felt more by those in Luzon, particularly Southern Luzon, and those from the class E households. They are the least optimistic, with about a third saying that the economy would still get worse. Manila and Mindanao are more upbeat.

The survey also asked which items they had already given up and which other items they were prepared to give up in the next six months in view of the current economic situation.