MANILA – Consumer sentiment for the next 12 months continue to be optimistic but business outlook was less upbeat, results of a Bangko Sentral ng Pilipinas (BSP) survey showed.
In a virtual briefing on Friday, BSP Monetary Policy Sub-Sector officer-in-charge Redentor Paolo Alegre Jr. said results of the second quarter 2024 Consumer Expectations Survey (CES) and Business Expectations Survey (BES) showed that the overall confidence index (CI) for the next 12 months was at 13.5 percent, slightly higher than the 13.4 percent CI recorded in the first quarter survey results.
Comparing by quarter, however, consumer sentiment was more pessimistic for the second quarter of the year as the CI became more negative at -20.5 percent from -10.9 percent in the first quarter of 2024.
Alegre said the weaker confidence among consumers was mainly due to their concerns over the faster increase in the prices of goods and higher household expenses, lower income, fewer available jobs, and the effectiveness of government policies and programs on inflation management, traffic and public transportation, provision of financial assistance, and labor and employment.
For the third quarter, Alegre said the CI also turned negative at -0.4 percent from 2.7 percent in the first quarter.
"Consumers expect higher inflation, interest and unemployment rates, and a weaker peso for all reference periods," Alegre said.
Business expectations
Alegre said the business sentiment in the Philippines turned less upbeat in the second quarter of the year as the overall CI slightly went down to 32.1 percent from 33.1 percent in the first quarter.
Alegre attributed the decline in business confidence mainly to the firms’ concerns over a softer demand for goods and services such as personal care, health and other consumer products, construction supplies, city hotels and restaurants, and manpower services, ongoing international conflicts that may push oil prices higher, slowdown in business activity due to El Niño-induced extreme weather conditions, and persistent inflationary pressures that may weigh down consumer spending.
For the third quarter, the country’s business confidence weakened as the overall CI also fell to 43.7 percent from 48.1 percent in the previous survey result.
For the next 12 months, business outlook was similarly less upbeat as the overall CI decreased to 56.5 percent from 60.8 percent in the first quarter.
The firms’ less optimistic outlook for the next 12 months was attributed primarily to their expectations of a weaker demand for products and services such as hardware and construction supplies, poultry, dining, and leisure trips, stiff domestic and foreign competition, the possible escalation of the ongoing conflicts in Gaza and Ukraine, and persistent price pressures from higher food prices. (PNA)
