Consumer confidence weakens while businesses are upbeat — BSP polls

MANILA, Philippines — Filipino consumers’ optimism for this quarter and the next 12 months weakened as inflation squeezes household budgets, although businesses were more upbeat.

The Bangko Sentral ng Pilipinas (BSP) on Friday reported that its nationwide survey of households showed consumers’ overall confidence index (CI) declined to 2.7 percent for the April-June period from 5.6 percent previously, the Bangko Sentral ng Pilipinas reported Friday.

Similarly, the consumer CI for the next 12 months sagged to 13.4 percent, from 15 percent in the previous survey.

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The weaker outlook of consumers for both periods was attributed to their anticipation of a faster increase in the prices of goods, fewer available jobs, and lower income.

A separate poll of the BSP covering companies showed the businesses’ confidence index rose to 48.1 percent for the second quarter, from 38.2 percent previously.

For the next 12 months, business confidence was likewise more upbeat as the overall CI increased to 60.8 percent, from 54 percent in the previous survey.

The firms’ more optimistic outlook was attributed primarily to their expectations of sustained strong demand; continued favorable economic conditions; lower inflation; business expansions, and lower interest rates.