CEBU, Philippines — A rise in the overall confidence index has been noted by the Bangko Sentral ng Pilipinas in the fourth quarter of 2024. This shows optimism among the consumers and a more positive outlook for the coming year.
The data shows improvement in the overall confidence index of the consumers with -11.1 percent in the fourth quarter from the -15.6 percent in the third quarter.
The more positive outlook was attributed to expectations of higher incomes, additional income sources, more working family members, and better job opportunities.
Consumers expressed greater confidence for first quarter of 2025 and the next 12 months (November 2024–October 2025), citing expectations of higher earnings and increased job availability.
Sentiment improved across all income groups and on key indicators, including the country’s economic condition, family finances, and income.
Additionally, fewer consumers hesitated to make big-ticket purchases, with the CI on major spending turning less negative at -67.3 percent from -68.9 percent in third quarter.
The percentage of households with savings dropped to 25.6 percent in fourth quarter from 29.0 percent in third quarter.
Meanwhile, 25.5 percent of households reported availing loans, unchanged from the previous quarter.
Consumers expect higher interest rates, a weaker peso, and rising unemployment across fourth 2024, first quarter 2025, and the next year.
Inflation expectations also remain elevated, with an average forecast of 6.2 percent for the next 12 months, surpassing the government’s target of 2–4 percent for 2024–2025.
Despite concerns, the BSP noted that fewer respondents now expect higher inflation compared to third quarter, signaling some easing in inflationary worries. — (FREEMAN)