Consumer confidence hits 2-year high

MANILA, Philippines - Filipino consumers are more upbeat in the fourth quarter of the year with the overall confidence index hitting its highest level since the third quarter of 2013, a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

BSP deputy governor Diwa Guinigundo said results of the 4th Quarter 2015 Consumer Expectations Survey (CES) showed the overall confidence index rising to -8.1 percent from -11.6 percent in the third quarter.

“This is one of the highest ratings since 2007. It is still negative meaning there are more pessimists out there than optimists,” he said.

This was the highest level since -7.9 percent in the third quarter of 2013. The highest overall confidence index was booked at -5.7 percent in the second quarter of 2013.

“Individuals are pessimistic. People would tend to see the problems rather than the brighter side,” Guinigundo added.

Rosabel Guerrero, director of the BSP’s Department of Economic Statistics, said the number of households with an optimistic view increased but was less than those who think otherwise.

Guerrero pointed out the more favorable outlook in the fourth quarter was due to expectations of more jobs and increase in the number of working family members as well as additional income with the release of Christmas bonus and 13th month pay.

She added the respondents also cited stable prices of commodities, effective government policies, improvements in infrastructure, and brisker business activity leading to higher household income.

Guerrero said the survey showed consumer confidence on the country’s economic condition increased while outlook on family financial situation and income was broadly steady.

“Consumer outlook on the country’s economic condition was more sanguine while their outlook on family financial situation and income declined but remained positive compared to their expectations in the previous quarter’s survey,” she said.

The country’s gross domestic product (GDP) growth accelerated to six percent in the third quarter of the year from the revised 5.8 percent in the second quarter on the back of robust domestic demand and improving government spending.

This brought to 5.6 percent the GDP expansion in the first nine months of the year, way below the seven percent to eight percent target penned by economic managers.