Filipino consumers, businesses more upbeat about Q4

MANILA, Philippines — Filipino consumer and business sentiment about the final quarter of 2024 turned positive amid expectations of softer inflation and bigger income, the Bangko Sentral ng Pilipinas (BSP) said.

Results of a nationwide BSP poll of 5,211 households conducted between July 1 and July 12 showed the overall confidence index (CI) of consumers for the next quarter reverted back to positive territory at 0.7 percent, from -0.4 percent previously.

A positive CI means the optimists outnumbered the pessimists. The BSP said such an upbeat outlook stemmed from households’ expectations of salary hikes and additional sources of income.

At the same time, respondents were looking forward to more available jobs, especially for family members looking for work.

Businesses upbeat, too

But Filipino households were less optimistic about the next 12 months after the CI declined to 9.9 percent, from 13.5 percent previously. The central bank said the respondents attributed their “guarded optimism” to faster inflation, fewer available jobs, lower income and “perceived pervasiveness of corruption in the government.”

Consumer sentiment on buying big-ticket items also remained pessimistic for the next 12 months, as the CI was little changed at -70.2 percent, from -70.7 percent before.

Meanwhile, a separate BSP poll of 1,525 companies showed the CI for businesses for the fourth quarter improved to 56.8 percent, from 43.7 percent previously.

Such a rosy outlook was fueled by companies’ expectations of higher demand during the holiday season, business expansion, easing inflation and “improving economic conditions.”

For the next 12 months, the central bank said businesses also turned bullish after the CI jumped to 56.8 percent from 43.7 percent. Companies are hoping for sustained demand as well as launch of new and improved products and services, the BSP noted.