Consumer outlook improves for Q2

Consumer confidence was more optimistic for the second quarter, with the overall confidence index (CI) increasing to 3.8 percent from 1.7 percent for the first quarter this year.

According to respondents, their positive outlook for was brought about by their expectations of improvement in peace and order, additional income, availability of more jobs, effective government policies, and increase in family savings.

For the next quarter and the year ahead, consumers’ optimism remained steady, as the CIs showed a fractional decline from previous quarter’s survey at 8.7 percent from 8.8 percent and at 23.1 percent from 24 percent, respectively. The relatively steady outlook for the next quarter and the year ahead stemmed from the counterbalancing of the number of respondents that reported more positive views on the economy, in anticipation of more jobs and additional income, versus those with negative views due to expectations of higher prices of goods.

Consumer outlook is measured across three component indicators--the country’s economic condition, family financial situation, and family income. For the second quarter, the improved consumer sentiment on the country’s economic condition and family financial situa- tion outweighed the less favorable outlook on family income. Notably, the CIs for the country’s economic condition and family financial situation reverted to positive territory for the current quarter while family income edged lower from a quarter ago.

For the near term and the year ahead, consumer confidence on the economic condition of the country was more optimistic while outlook on family financial situation and income turned less positive compared to the previous quarter’s survey results.

Consumer outlook across income groups improved for the current quarter but was mixed for the next quarter and the year ahead.

For the next quarter, the sentiment was less favorable for the low-income, broadly steady for the high-income but was more upbeat for the middle-income group.