Consumer confidence in the Philippines declined in the first quarter of 2025 as households expressed greater pessimism about the economy, citing higher prices, lower incomes, and limited employment opportunities, according to the latest Consumer Expectations Survey (CES) released by the Bangko Sentral ng Pilipinas (BSP).
The overall consumer confidence index (CI) dropped to -13.0% in Q1 2025, from -11.1% in the previous quarter and -10.9% in the same period last year.
A negative CI reflects a larger share of pessimistic respondents compared to optimistic ones.
The quarterly survey showed a decline in sentiment across all income groups, with inflationary pressures remaining the top concern among households.
The BSP noted that consumers reported worsening assessments of their financial conditions, as well as the broader economic situation.
Sentiment for the next quarter also turned slightly negative, with the CI falling to -0.5% from a positive 4.2% in the fourth quarter of 2024 and 2.7% in Q1 2024.
Consumers were particularly cautious about their income prospects and employment stability.
Despite the current concerns, the 12-month outlook remained optimistic. The CI for the next 12 months held steady at 12.4%, though slightly down from 13.4% a year earlier.
Households expect improvements in economic conditions in the longer term, which may be supported by anticipated government measures and stable inflation forecasts.
The BSP reiterated its commitment to maintaining price stability and emphasized that inflation is projected to remain within the 2.0–4.0% target range until 2027.
The central bank said manageable inflation is crucial in sustaining consumption, investments, and employment growth.
The Q1 2025 CES, conducted from March 7 to 19, surveyed 5,490 households nationwide with a 98.4% response rate. Respondents included a mix of high-income (42.9%), middle-income (35.2%), and low-income (21.9%) groups, with 44.8% coming from Metro Manila and the rest from areas outside the capital.
The CES results are closely monitored by the BSP as part of its monetary policy formulation.
Business News Asia