Consumer confidence slightly improves

Sentiment of Filipino consumers remained downbeat for the third quarter, but they expressed optimism that their financial conditions and the economy’s performance would significantly improve in the succeeding quarters.

According to the latest Consumer Expectation Survey (CES) conducted by the Bangko Sentral ng Pilipinas (BSP), the consumer confidence index for the current quarter was negative, but that for the fourth quarter and the coming year came out positive.

Survey results showed that the consumer confidence index for the current quarter settled at -13.3 percent.

This was the second highest current quarter index on record, following the -8.5 percent registered in the fourth quarter of 2010.

Results also showed that the “next quarter” index, which reflects the outlook of consumers on their financial situation and the economy’s performance for the fourth quarter of this year, reached +6 percent. This was the highest following the +11.9 percent registered in the fourth quarter of 2010.

Also, the “next year” index, which indicates the outlook of consumers on their financial situation and the economy’s performance for the coming year, reached +16.2 percent.

This was the highest following the +25.9 percent registered in the fourth quarter of 2010.

Rosabel Guerrero of the economic statistics department of the BSP, said the favorable sentiment for the coming quarter and the year ahead could be credited to expectation that the economy would further expand and create more jobs for Filipinos.

“Respondents also cited potential increase in incomes due to the increase in working family members and the corresponding rise in family income,” Guerrero said during a press conference.

Guerrero added that the respondents cited the low inflation environment, which is seen to help keep their expenditures almost within current levels.

BSP Deputy Governor Diwa Guinigundo said the improvement in the consumer sentiment for the third quarter and their positive outlook for the coming quarter and the year ahead could help boost consumption.

As a result, he said, the economy can benefit from higher consumer spending and may be able to maintain a healthy pace of growth over the short term.

“There is actually a good correlation between consumer sentiment and economic growth,” Guinigundo said.

The latest CES was conducted from July 2 to 13 and covered 5,604 households from all over the country.

The response rate was recorded at 96.9 percent.