Consumer confidence weakens for Q4
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.