BSP: More Filipinos saving for the rainy day

Amid improving economic prospects and consumer confidence, more households set aside money for savings during the second quarter, the Bangko Sentral ng Pilipinas (BSP) said.

The results of the BSP’s second-quarter consumer expectations survey (CES) showed that the percentage of households with savings rose to 35.8 percent during the April to June period compared with 34.9 percent in the first quarter.

“According to respondents, they save money for the following reasons: Emergencies, education, retirement, health and hospitalization, business capital and investment, and purchase of real estate,” the BSP said in a report.

According to the BSP, “almost two-thirds (64.9 percent) of household savers had bank deposit accounts, while 44.9 percent kept their savings at home and 28.6 percent put their money in cooperatives, paluwagan, other credit/loan associations, and as investment (such as stocks and insurance in the SSS, Philhealth and Pag-IBIG).”

The second-quarter CES also showed that consumer confidence hit an all-time high of 13.1 percent, partly on many Filipinos’ perception of a better peace and order situation in the country.

The overall confidence index (CI) jumped from 8.7 percent in the first quarter as well as reversed the negative 6.4 percent posted during the April to June period last year, based on the survey conducted from April 1-12, or before the declaration of martial rule in Mindanao last May 23 due to the attacks in Marawi City perpetrated by the Islamic State-supportive Maute group.

The latest BSP data showed that each of the first four quarters of the Duterte administration posted a positive CI, which meant that the number of optimistic households exceeded the pessimistic.

The CIs prior to the third quarter of 2016, or since the consumer expectations survey was started in 2007, were all in the negative.

The BSP noted, however, that the latest CES showed that the percentage of households that could set aside more money for additional savings during the second quarter slightly decreased to 44.9 percent from 45.1 percent in the previous quarter, amid the start of June classes.