Consumers still 'pessimistic' in 2nd quarter of 2023: BSP survey

MANILA (UPDATED) — Consumer confidence in the second quarter of 2023 remained pessimistic, almost unchanged compared to the first 3 months of the year, the Bangko Sentral ng Pilipinas said on Friday.

The overall confidence index (CI) was steady at -10.5 percent from -10.4 percent the previous quarter, according to the BSP's Q2 Consumer Expectations Survey (CES).

"This means that the pessimists continued to outnumber the optimists, but the margin was almost unchanged from the previous quarter," the central bank said.

The BSP said consumers attributed the continued pessimism to the faster increase in the prices of goods and higher household expenses, lower income, fewer jobs and the effectiveness of government policies and programs on inflation management, economic resilience, high-quality and well-paid job creation and financial aid to low-income households.

Consumers were also "less confident" for the next quarter and the next 23 months, the CES showed, as the CI declined to 4.6 percent and 20 percent from 7.5 percent and 22.7 percent, respectively.

Consumers' outlook were pessimistic across consumer confidence indicators including the country's economic condition, family's financial situation and family income, the BSP said.

Consumer sentiment, however, was mixed across income groups, data showed. Pessimism for the low-income group rose, steady among the middle-income group but the high-income segment is "optimistic" for Q2, the BSP said.

The percentage of households with loans grew while those with savings dipped, the BSP said.

Consumers also expect higher interest and inflation rates, a weaker peso and lower unemployment rate for the quarter and the near term, it added.

• PH unemployment rate dips to 4.7 pct in March
• Inflation eases for 4th straight month to 6.1 percent in May

RELATED VIDEO

Watch more News on iWantTFC