The consumer sentiment in the country was less pessimistic for the first quarter of 2023 as the overall confidence index (CI) improved to -10.4 percent from -14.6 percent in Q4 2022, the Bangko Sentral ng PIlipinas said.
The less negative CI indicates that the number of households with optimistic views increased, but it was still lower than those with pessimistic views.
Consumers cited that their improved outlook for Q1 2023 was due to their optimism about: more available jobs and permanent employment, higher income from wages/salaries, remittances, and other sources, and positive developments in the country’s COVID-19 situation such as the relaxation of vaccination, testing, and masking requirements, fewer COVID-19 cases, and post-pandemic recovery of businesses as workers return to their offices.
For Q2 2023, the CI declined but remained positive at 7.5 percent from 9.5 percent a quarter ago. Meanwhile, the consumer sentiment for the next 12 months remained optimistic as the CI marginally increased to 22.7 percent from 21.7 percent in Q4 2022.
Consistent with the nationwide consumer outlook, consumer confidence was less pessimistic for Q1 2023 across all three component indicators and across all income groups.
The consumer sentiment on buying big-ticket items for Q1 2023 was less pessimistic as the CI turned less negative to -72.8 percent from -74.5 percent in Q4 2022.
About 22.8 percent of households availed of a loan in the last 12 months, which is lower than the 24 percent recorded in the previous quarter’s survey results. Meanwhile, the percentage of households with savings rose to 32.9 percent from 30.5 percent in Q4 2022.
For Q1 and Q2 2023, and the next 12 months, consumers anticipate that the interest rate may increase, the peso may depreciate against the US dollar, and the unemployment rate may decline.
Consumers also expect that the inflation rate may rise for the reference periods. In particular, consumers are expecting that the inflation rate may average at 6.2 percent for the next 12 months, which is above the upper end of the national government’s inflation target range of 2 to 4 percent for 2023-2024.
