Consumer confidence turns negative
Filipino families have become pessimistic, the Bangko Sentral ng Pilipinas (BSP) reported on Friday, worrying over higher living costs, inadequate salaries and the lack of jobs.
BSP Department of Economic Statistics Director Redentor Paolo Alegre Jr. (left) and Deputy Governor Diwa Guinigundo speak at a briefing on the latest consumer confidence data. PHOTO BY ROGER RAÑADA
The overall consumer confidence index (CI) for the third quarter dropped to -7.1 percent, a reversal from the 3.8 percent recorded three months earlier and the 10.2 percent posted in the comparable 2017 period.
Consumers turned “pessimistic,” BSP Department of Economic Statistics Director Redentor Paolo Alegre Jr. said in a briefing, with the latest CI having snapped eight consecutive quarters of positive results.
It was also the lowest in almost three years or since the -8.1 percent recorded in the fourth quarter of 2015.
“According to respondents, their negative outlook stemmed from their expectations of increasing commodity prices, low salary/income, higher household expenses, high unemployment rate, and no increase in income,” Alegre said,
Respondents also pointed to higher educational and transportation expenses as reasons behind their gloom.
The outlook for the next quarter and the year ahead also declined, with the respective CIs dipping to 3.8 percent and 13 percent from 8.7 percent and 23.1 percent previously.
“Similar to the current quarter, respondents cited expectations of high prices of goods, low salary or income, and rise in expenditures as reasons for their less upbeat outlook for the near term and the year ahead,” Alegre said.
The latest Consumer Expectations Survey, which measures sentiment about the country’s economic condition, family financial situation and family income, was conducted from July 1 to 14. It covered 5,580 households nationwide.
“Consumer outlook is measured across three component indicators, namely, the country’s economic condition, family financial situation and family income. The quarter-on-quarter decline in confidence was observed across these three component indicators,” Alegre pointed out.
The CIs for the country’s economic condition and family financial situation turned negative at -17 percent and -5.3 percent, respectively, while that for family income remained positive at 1 percent but was lower from the quarter-ago 5.5 percent.
For the next quarter, the outlook with regard to the country’s economic condition of the country was pessimistic at -2.6 percent, broadly steady and positive for family financial situation at 5.5 percent, and more optimistic on family income at 8.5 percent.
For the next 12 months, consumer confidence was less upbeat at 6.9 percent for the economy, 13.7 percent for family finances and 18.3 percent for family incomes from 23.7 percent, 20.1 percent, and 25.4 percent, respectively, in the previous survey.
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