Consumer outlook in the Philippines slightly weakened in the third quarter.
The ‘Consumer Expectations Survey’ conducted by Bangko Sentral ng Pilipinas showed the overall confidence index declined to ‐7.9 per cent in the third quarter from ‐5.7 per cent during the second quarter.
Consumers cited the following reasons for their less favorable outlook for the current quarter: low income due to factors such as poor harvests, no permanent work and downturn of businesses, an increase in the number of unemployed persons and higher household expenditures.
Despite the lower confidence index, the current quarter consumer confidence registered the second highest reading since the nationwide survey started in the first quarter of 2007.
The decline in consumer outlook in the Philippines mirrored the weaker sentiment of consumers in Japan, Indonesia, Taiwan and Thailand, but was in contrast to the bullish consumer confidence in Australia, Germany and China.
Bangko Sentral expects consumer confidence to rise in the fourth quarter as consumers expect more available jobs as well as more working family members, increased investments, additional incomes and monetary benefits (bonuses) during the holiday season.
However, the outlook on the country’s economy was less upbeat as respondents expected higher prices of goods and services for the year ahead, consistent with their views of higher inflation over the next 12 months.
