Pessimism among Filipino consumers increased in the fourth quarter as the adverse impact of the typhoons in late September on household incomes dampened sentiments.
Results of the Consumer Expectation Survey (CES) for the fourth quarter, conducted by the Bangko Sentral ng Pilipinas from October 3 to 14, showed that the confidence index of Filipinos settled at -20.6 percent, a deterioration from the -8.5 percent in the same period last year.
The latest index was also lower than the 18.7 percent registered in the third quarter of this year.
A negative index results when the number of respondents who said they were pessimistic about the economy’s growth prospects and their own income-generation potential outnumbered those who said they were optimistic.
BSP Assistant Governor Cyd Tuaño-Amador said typhoons “Pedring” and “Quiel,” which struck the country in the last week of September, dragged the security of Filipino consumers about their incomes, thereby pulling down the confidence index.
“Respondents cited homegrown sources of pessimism and one of these was the typhoons,” Amador said, adding that unfavorable economic conditions in the global market were not a factor for the pessimism of consumers this time.
The central bank official said respondents believed that the typhoons would reduce their incomes. The impact of the typhoons on sentiment was despite reports that the unemployment rate in the country actually declined as jobs rose.
Results of the survey also showed that the “next three
months” consumer confidence index, which reflects the outlook of respondents on their income potentials and the economy’s growth prospects over the next three months, settled in the positive territory to hit +2.8 percent.