The country’s consumer sentiment continued to improve as the overall confidence index (CI) increased to -30.9 percent from -34.7 percent from the previous quarter.
Bangko Sentral ng Pilipinas said the improved CI, albeit remaining negative, indicates that the number of households with pessimistic views decreased but was still more than those with optimistic views.
According to respondents to the quarterly Consumer Expectations Survey of the BSP, their improved outlook during the current quarter was brought about by their expectations of: more jobs and permanent employment, additional/higher income, and effective government policies and programs, particularly to address COVID-19-related concerns, such as the availability of vaccines, provision of financial assistance, and easing of quarantine restrictions.
Similarly, consumer confidence was also upbeat for the third quarter and the next 12 months.
Consumer outlook in terms of the three component indicators, namely: country’s economic condition, family’s financial situation, and family income also generally improved.
The outlook on household spending on basic goods and services for the third quarter declined to 25.4 percent, after posting an improvement of 29 percent in the first quarter survey result.
The percentage of households in the country that considered Q2 2021 as a favorable time to buy big-ticket items dropped slightly to 11.7 percent from 11.9 percent recorded in Q1 2021.
Meanwhile, the percentage of households in the country that considered the next 12 months as a favorable time to buy big-ticket items decreased to its lowest reading since Q1 2007 at 3.6 percent from 3.7 percent in Q1 2021.
The percentage of households with savings accounts in banks decreased to 19.4 percent for Q2 2021 from 20.1 percent in Q1 2021.
The Q2 2021 survey results showed that consumers anticipated that interest rates may increase and the peso may depreciate in Q2 2021, Q3 2021, and the next 12 months.
Respondents also expected the unemployment rate may rise for Q2 2021 and Q3 2021, but decline over the next 12 months.
Households anticipated that the rate of increase in commodity prices is expected to remain within the government’s inflation target range of 2 to 4 percent for 2021–at 2.9 percent for Q2 2021, 3 percent for Q3 2021, and 3.2 percent for the next 12 months.
