Manila – The latest Bangko Sentral ng Pilipinas (BSP) surveys indicate sustained consumer optimism over the next 12 months, although businesses have grown less confident due to various economic challenges.
According to Philippines News Agency, the second quarter 2024 Consumer Expectations Survey (CES) and Business Expectations Survey (BES) revealed a mixed economic outlook. The Consumer Confidence Index (CI) for the coming year is slightly up at 13.5 percent, from 13.4 percent in the previous quarter. However, consumer sentiment for the current quarter worsened, registering a CI of -20.5 percent compared to -10.9 percent earlier in the year.
Alegre highlighted that the dampened consumer confidence for the second quarter stems from concerns over rising prices, increased household costs, reduced income, fewer job opportunities, and skepticism regarding government policies on inflation, transportation, financial assistance, and employment sectors. The outlook for the third quarter also declined slightly to a CI of -0.4 percent from a previously positive 2.7 percent.
On the business front, the sentiment also turned less positive in the second quarter, with the CI dropping to 32.1 percent from 33.1 percent. This decline was attributed to lower demand expectations for various sectors including personal care, health products, construction materials, city hotels, restaurants, and manpower services. Additional concerns were raised about the potential impact of international conflicts on oil prices, adverse weather conditions due to El Niño, and sustained inflation affecting consumer spending.
Looking ahead, businesses expect further challenges over the next 12 months, with the CI falling to 56.5 percent from 60.8 percent. Factors contributing to this outlook include anticipated weaker demand for hardware, construction supplies, poultry products, dining, and leisure services, along with stiff competition and ongoing global conflicts impacting markets.