The consumer sentiment in the Philippines was more pessimistic for Q2 2024 as the overall confidence index (CI) became more negative at -20.5 percent from -10.9 percent in Q1 2024, data from the latest Consumer Expectations Survey of the Bangko Sentral ng Pilipinas showed.
The decline in the index, according to BSP, is “reflective of the increase in the percentage of pessimists, which outweighed the increase in the percentage of optimists.”
“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,” BSP said.
For the next quarter, the CI also turned negative at -0.4 percent from 2.7 percent in Q1 2024.
However, the consumer sentiment for the next 12 months remained optimistic as the CI was little changed at 13.5 percent from 13.4 percent in Q1 2024.
Consistent with the nationwide consumer outlook, the CI for Q2 2024 across the three component indicators–country’s economic condition, family’s financial situation, and family income, became more negative.
Similarly, consumer confidence for Q2 2024 across income groups–low-income, middle-income, and high-income, became more pessimistic, which mirrored the national trend.
BSP said the consumer sentiment on buying big-ticket items for Q2 2024 was more pessimistic as the CI became more negative at -64.5 percent from -62.6 percent in Q1 2024.
Also, in Q2 2024, 24.6 percent of the respondents availed of a loan in the last 12 months, slightly lower than the 24.9 percent recorded in Q1 2024. Further, the percentage of households with savings decreased to 31.4 percent from 33.5 percent in Q1 2024.
BSP added that consumers anticipate that the unemployment rate may increase, and the peso may depreciate against the US dollar for Q2 2024, Q3 2024, and the next 12 months.
Meanwhile, households expect that the interest rate may increase at a faster pace in Q2 2024 but may increase at a slower rate in Q3 2024 and the next 12 months.
“Households expect that inflation may rise albeit at a more moderate pace in Q3 2024 and the next 12 months. Specifically, consumers expect that the inflation rate may average at 5.5 percent for the next 12 months, above National Government’s inflation target range of 2 to 4 percent for 2024-2025,” BSP said.
