MANILA – Consumer confidence turned more upbeat in the second quarter of 2018, supported by expectations of improving economic conditions amid rising commodity prices, data released by the Bangko Sentral ng Pilipinas (BSP) showed.
Results of the Consumer Expectations Survey (CES) showed the overall confidence index (CI) climbed to 3.8 percent during the period from a near two-year low of 1.7 percent in the previous quarter.
The CI is computed as the percentage of households that answered in the affirmative minus the percentage of households that answered in the negative with respect to their views on a given indicator.
“It went up from 1.7 to 3.8 percent. So that means there are more optimists than pessimists, kaya positive. Not only is it positive but the number also went up from 1.7 to 3.8,” BSP deputy governor Diwa Guinigundo told reporters during a press briefing in Manila.
BSP data shows consumer confidence has been on yielding positive notes since the third quarter of 2016.
“Consumer respondents continue to be optimistic about the outlook of the economy focusing on three areas: economic condition, family and financial situation, and family income,” Guinigundo said.
BSP head of Department of Economic Statistics Redentor Paolo Alegre Jr. noted that respondents attributed their positive responses to:
- An improvement in peace and order
- Additional income
- Availability of more jobs
- Effective government policies
- Higher family savings
“In general, people are saying … respondents are saying economic condition is expected to improve, family and financial situation is also expected to improve,” Guinigundo said.
While results of the survey showed that consumers expect inflation to accelerate, the central bank official noted the outlook was lower compared to the previous quarter.
The second quarter CES showed respondents expected the inflation rate to settle at 4.2 percent in the next 12 months – slower than the 4.7 percent in the first quarter survey.
“In the end if the consumer is still willing to spend despite higher inflation, then the consumer sentiment will still be positive,” Alegre said.
Consumer confidence is measured across three component indicators, namely the country’s economic condition, family financial situation, and family income.
The second quarter CES was conducted on April 2 to 14, covering a sample size of 5,517 households in Metro Manila and areas outside the National Capital Region.
Of the sample size, 5,339 households responded to the survey, equivalent to a response rate of 96.8 percent. (GMA News)
