Consumer confidence weakens in Q3

MANILA, Philippines - Consumer confidence weakened further to 26.3 percent in the third quarter of the year, from the 17.3 percent in the second quarter, based on the Consumer Expectations Survey (CES) undertaken by the Bangko Sentral ng Pilipinas (BSP) for the month of August.

“This CI (confidence index) indicates that the number of pessimists increased and continued to exceed the number of optimists in the third quarter 2014,” the report, released yesterday, said.

However, BSP Deputy Governor Diwa C. Guinigundo said that the buying conditions and intentions remained broadly steady.

“Buying conditions and intentions have been broadly steady for house and lots and motor, although it is weaker in the consumable,” Guinigundo said.

The main reasons for the increased pessimism are: rising prices of basic commodities; political concerns over such issues as the Priority Development Assistance Fund (PDAF); higher household expenses, and concerns over income, employment opportunities and business environment.

Nonetheless, the percentage of respondents who believe that it is a good time to buy big-ticket items such as house/lot and automobiles increased. The percentage of respondents that said so recorded an all-time high level of 24.9 percent.

Guinigundo said that the data was very Filipino.

“The automobile industry has introduced new models, the property sector offered so many housing projects, and banks offered low lending rates with longer repayment period,” Guinigundo said.

For the overseas Filipino workers (OFWs), the pattern of spending has not changed, ranging from food, medicines, medical and debt payments.