MANILA, Philippines - Consumer confidence continued to improve in the first quarter of the year as Filipinos enjoy the cuts in oil prices and the stable cost of food, a Bangko Sentral ng Pilipinas survey showed.
The confidence index improved to -10 percent in the first quarter from -21.8 percent in the previous three months, based on the latest Consumer Expectations Survey. The negative index showed pessimists still outnumbered optimists during the period.
“Their improved outlook during the current quarter was due to expectations of lower oil prices and stable prices commodities, higher family income leading to more savings, availability of more jobs and increase in the number of employed family members, appreciation of the peso, and improvement and development in road infrastructure,” the BSP said.
Moreover, the respondents said the lesser number of calamities, perceived less corruption from the government, and additional assistance from public officials through the Pantawid Pamilyang Pilipino Program supported the improvement in the outlook during the period.
For the next quarter, the confidence index also climbed to 4.4 percent from 0.7 percent in the previous survey. The confidence index for the year ahead also went up to 17.3 percent from 9.6 percent.
“This indicates that the number of consumers with favorable views increased and exceeded those with unfavorable views,” the BSP said.
The consumer confidence index is measured against the country’s economic condition, family financial situation, and family income.
The latest survey showed outlook on the country’s economic condition and family financial situation picked up for the first quarter, the next three months, and the year ahead. The confidence index on family income, meanwhile, was also more optimistic for this quarter but remained steady for the next quarter and the year ahead.
“These indicate households’ growing confidence in the country’s economic condition and their own family finances,” the central bank said.
At the same time, the CES showed the number of households with savings hit a record high of 31.6 percent in the first quarter from 25.7 percent in the fourth quarter.
Respondents said they were saving for emergencies, education, health and hospitalization, retirement, and business capital and investment.
The spending outlook, meanwhile, slid to a record low of 30 percent from 41.8 percent in the previous survey.
“Even as majority of respondents continued to expect higher spending on basic goods and services, the number that said so declined compared to a quarter ago, indicating that the growth rate in consumer spending could slow down in the near term,” the BSP said.
The latest survey covered 5,818 households and was conducted from January 26 to February 5.