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Keisha Ta-Asan - The Philippine Star
June 7, 2025 | 12:00am
Photo shows shoppers flocking to Divisoria in Manila.
STAR / File
MANILA, Philippines — Filipino consumers have turned pessimistic for the second quarter, but sentiment for the next 12 months remains optimistic, the Bangko Sentral ng Pilipinas (BSP) said. Based on the first quarter 2025 Consumer Expectations Survey (CES), the overall confidence index reverted to negative territory at -0.5 percent from 4.2 percent a quarter ago.
The BSP said that respondents attributed their pessimistic outlook to faster increases in the prices of goods and services, declining incomes and fewer job opportunities.
“Consumers also expressed concerns about the continuity of good governance initiatives and the potential impact of political noise on the delivery of government programs,” the BSP said.
A negative confidence index indicates that more respondents are pessimistic about the economic outlook than optimistic. The results of the CES are closely monitored by the BSP as part of its assessment in shaping monetary policy decisions.
On the other hand, consumer sentiment for the next 12 months remained optimistic, as the confidence index was unchanged at 12.4 percent from the previous survey round.
The respondents’ sustained optimism for the next 12 months was due to expectations of additional and higher income, more available jobs, salary increases as well as stable prices of goods and services.
From January to March, the overall consumer confidence index turned more negative at -13 percent from -11.1 percent in the fourth quarter.
However, consumer confidence has seen a notable recovery for the second quarter, significantly improving from the low point of -54.4 percent in the third quarter of 2020, during the height of the pandemic.
However, the BSP said it has not yet reached the positive levels seen from 2019 to 2020.
It said that to further boost confidence, it will be beneficial for both government agencies and the private sector to work together in addressing inflationary challenges and supporting employment.
