Con­sumer con­fi­dence weak­ens for Q4

Sun.Star Davao - - BUSINESS - /BSP

Con­sumer out­look con­tin­ued to weaken for the fourth quar­ter of 2018, as the over­all con­fi­dence in­dex (Cl) de­clined to -22.5 per­cent from -7.1 per­cent in third quar­ter, Bangko Sen­tral ng Pilip­inas said.

In par­tic­u­lar, the cur­rent quar­ter Cl reg­is­tered the low­est read­ing back in fourth quar­ter 2014 and posted the largest drop by 15.4 per­cent­age points since the na­tion­wide sur­vey started in first quar­ter 2007.

The neg­a­tive in­dex in­di­cates that the pes­simists out­num­bered the op­ti­mists for fourth quar­ter. The Cl is com­puted as the per­cent­age of house­holds that an­swered in the af­fir­ma­tive less the per­cent­age of house­holds that an­swered in the neg­a­tive with re­spect to their views on a given in­di­ca­tor. A pos­i­tive Cl in­di­cates a fa­vor­able view, ex­cept for the in­fla­tion rate, the peso-bor­row­ing rate, un­em­ploy­ment and change in prices, where a pos­i­tive Cl in­di­cates the opposite. The over­all con­sumer Cl mea­sures the av­er­age di­rec­tion of change in three in­di­ca­tors - over­all con­di­tion of the economy, house­hold fi­nances, and house­hold in­come.

Re­spon­dents at­trib­uted their bear­ish out­look dur­ing the cur­rent quar­ter to the fol­low­ing: higher prices of com­modi­ties, low salary/in­come, in­crease in house­hold ex­penses, no in­crease in in­come, and up­surge in the num­ber of un­em­ployed per­sons. Re­spon­dents also noted the oc­cur­rence of typhoon and other calami­ties in the third quar­ter as rea­sons be­hind their weaker sen­ti­ment for the cur­rent quar­ter.

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