Consumer confidence sinks amid political drama

The Bangko Sentral ng Pilipinas released results of of its latest Consumer Expectations Survey. (File photo / Philippine Daily Inquirer)

MANILA, Philippines — Recent political developments ahead of the recent midterm elections added to the concerns of Filipino consumers. According to the Bangko Sentral ng Pilipinas (BSP), consumer confidence sank again during the first half of this year.

A quarterly survey of over 5,000 households nationwide showed the overall confidence index (CI) of consumers turned more negative to -13 percent in the first quarter. This came further down from -11.1 percent in the preceding three months.

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Meanwhile, the CI for the second quarter reverted back to the negative territory at -0.5 percent, from 4.2 percent previously.

A negative CI means the pessimists outnumbered the optimists. The BSP said consumer sentiment has yet to return to positive territory since the height of the pandemic.

“The heightened pessimism among consumers for Q1 2025 was mainly due to their concerns over the: (a) faster increase in the prices of goods and services (b) lower household income, and (c) fewer available jobs,” the BSP said.

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“Recent political developments have also weighed on consumer sentiment for the current quarter. This is due in part to their perceived negative impact on the effective delivery of government programs,” it added.

Moving forward, the consumer sentiment for the next 12 months remained optimistic, with the CI unchanged at 12.4 percent.