Manila Times
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Wednesday, Jul 30, 2025
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Filipino Consumer Sentiment Dips Ahead of Second Quarter Despite Year-Long Optimism
Consumer Expectations Survey reveals increased pessimism driven by rising prices and political concerns.
MANILA, Philippines — Recent findings from the Bangko Sentral ng Pilipinas (BSP) illustrate a shift in Filipino consumer sentiment, as the Consumer Expectations Survey (CES) for the first quarter of 2025 reports a decline in consumer confidence for the upcoming second quarter.
The overall confidence index fell to -0.5 percent, a significant decrease from a positive 4.2 percent in the previous quarter.
According to the BSP, this pessimism is primarily attributed to a rise in the prices of goods and services, decreasing incomes, and a reduction in job opportunities.
Consumers have also expressed unease regarding the sustainability of good governance initiatives, citing political challenges that may affect the execution of government programs.
A negative confidence index suggests that respondents are more inclined to view the economic outlook unfavorably than favorably.
The BSP closely observes the CES results as they play a critical role in informing monetary policy decisions.
Despite the current dip, sentiment regarding the economic outlook for the next 12 months remains optimistic, with the confidence index stable at 12.4 percent compared to the previous survey round.
Factors contributing to this sustained optimism include expectations for increased income, availability of more jobs, anticipated salary hikes, and stable prices for goods and services.
From January to March, the overall consumer confidence index grew more negative, recording -13 percent, an increase from -11.1 percent in the fourth quarter.
However, it is noteworthy that consumer confidence has rebounded considerably from the low of -54.4 percent observed during the third quarter of 2020, which coincided with the peak of the Covid-19 pandemic.
While the current sentiment shows a notable recovery, the BSP indicated that consumer confidence levels have not yet returned to the positive figures noted from 2019 to 2020. In order to bolster consumer confidence further, the BSP emphasizes the importance of collaboration between government agencies and the private sector in addressing ongoing inflationary pressures and enhancing employment opportunities.
The overall confidence index fell to -0.5 percent, a significant decrease from a positive 4.2 percent in the previous quarter.
According to the BSP, this pessimism is primarily attributed to a rise in the prices of goods and services, decreasing incomes, and a reduction in job opportunities.
Consumers have also expressed unease regarding the sustainability of good governance initiatives, citing political challenges that may affect the execution of government programs.
A negative confidence index suggests that respondents are more inclined to view the economic outlook unfavorably than favorably.
The BSP closely observes the CES results as they play a critical role in informing monetary policy decisions.
Despite the current dip, sentiment regarding the economic outlook for the next 12 months remains optimistic, with the confidence index stable at 12.4 percent compared to the previous survey round.
Factors contributing to this sustained optimism include expectations for increased income, availability of more jobs, anticipated salary hikes, and stable prices for goods and services.
From January to March, the overall consumer confidence index grew more negative, recording -13 percent, an increase from -11.1 percent in the fourth quarter.
However, it is noteworthy that consumer confidence has rebounded considerably from the low of -54.4 percent observed during the third quarter of 2020, which coincided with the peak of the Covid-19 pandemic.
While the current sentiment shows a notable recovery, the BSP indicated that consumer confidence levels have not yet returned to the positive figures noted from 2019 to 2020. In order to bolster consumer confidence further, the BSP emphasizes the importance of collaboration between government agencies and the private sector in addressing ongoing inflationary pressures and enhancing employment opportunities.
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