CONSUMER sentiment improved significantly across the country in the third quarter although the pessimists continue to outnumber optimists, a survey conducted by the Bangko Sentral ng Pilipinas showed.
From negative 24.1 percent in the second quarter, consumer pessimism softened to negative 18.7 percent as Filipino households anticipate more job creation, higher earnings and booming business, coupled with the goodwill generated by government programs like the Pantawid Pamilyang Pilipino Program.
“Their responses suggested that expansion in the domestic labor market, growth in local industries and higher fiscal spending could be expected to boost domestic demand for the current quarter. Their sentiments, however, did not reflect the possible impact of the US credit-rating downgrade and the spillover effects of sovereign-debt crisis issues in Europe, since the survey was conducted from July 1 to 14, 2011,” the BSP said in a statement on Thursday.
According to the BSP, consumer perceptions about the economy also improved while their outlook on family finances and income remained steady.
Respondents cited brighter job prospects, good governance and stable prices for their improved outlook on the economic condition of the country. Meanwhile, consumer sentiment regarding family finances and income remained almost unchanged from those of the previous quarter.
The survey found the most optimistic belonged to the high-income group. But even the low-income group’s sentiment on the country’s economic condition improved although their outlook on family finances weakened as a majority of them cited low income and higher cost of goods and services for their pessimism.
For the next quarter and the year ahead, consumer sentiment turned more favorable across all three indicators in all income groups.
But fewer households expected their expenditures on goods and services to go up in the fourth quarter. The spending outlook decreased for all basic commodities, primarily on transportation and education. This view stemmed from the decline in inflation expectations of survey respondents.
At the same time, however, consumers from both the National Capital Region and areas outside the NCR considered the current quarter as a favorable time to buy big-ticket items like house and lot, consumer durables and motor vehicles.
