Consumer confidence improved in first quarter, says BSP

CONSUMER confidence in the Philippines improved in the first quarter of 2023, compared to the fourth quarter of 2022 amid the full reopening of the economy that generated jobs and higher income, according to the latest Consumer Expectation Survey of the Bangko Sentral ng Pilipinas.

Results of the survey showed that while consumer sentiment remained in the negative territory, it turned less pessimistic this year. The overall confidence index improved to -10.4 percent from -14.6 percent in the fourth quarter.

“The less negative confidence index indicates that the number of households with optimistic views increased, but it was still lower than those with pessimistic views,” the BSP said.

Consumers attributed their improved outlook for the first quarter to their optimism on more available jobs and permanent employment, higher income from wages/salaries, remittances and other sources and positive developments in the country’s COVID-19 situation.

The relaxation of vaccination, testing and masking requirements, fewer COVID-19 cases and post-pandemic recovery of businesses made workers return to offices.

It said that for the second quarter of 2023, the confidence index declined but remained positive at 7.5 percent from 9.5 percent a quarter ago. Meanwhile, the consumer sentiment for the next 12 months remained optimistic, as the index marginally increased to 22.7 percent from 21.7 percent.

Consistent with the nationwide consumer outlook, consumer confidence was less pessimistic for the first quarter across all three component indicators such as family financial situation, country’s economic condition and family income and low-, middle- and highincome groups.

The consumer sentiment on buying big-ticket items for the first quarter was less pessimistic, as the confidence index turned to -72.8 percent from -74.5 percent in the fourth quarter.