Bangko Sentral survey: Pinoy consumer sentiment sour in Q3, less optimistic in Q4

Consumer sentiment turned sour in the third quarter of the year on higher prices of goods while graft and corruption involving government funds remain in the limelight, a Bangko Sentral ng Pilipinas survey showed.

 

In the Consumer Expectations poll for the third quarter, the household confidence index (CI) decreased to -26.3 percent from -17.3 percent in the previous quarter, Bangko Sentral said Friday.

 

Respondents attributed their bearish outlook to "the rising prices of basic commodities, political concerns such as issues about the Priority Development Assistance Fund and Disbursement Acceleration Program, higher household expenses and concerns over income, employment opportunities and the business environment."

 

The CI is the percentage of households that answered in the affirmative minus those that replied otherwise.

 

A negative CI means that the number of households with an optimistic outlook continued to be outnumbered by those who think otherwise.

Higher commodity prices

 

Filipino consumers now have to allocate a higher budget for food and less in other things given the elevated prices of goods in the market, Bank of the Philippine Islands lead economist Emilio Neri Jr. told GMA News Online.

 

"Understandably... supply issues, given the impact of port congestion, have led to higher prices," he said.

 

In August, consumer prices accelerated by 4.9 percent in August – unchanged from July – as the slower rise in the transport costs offset increases in food and utilities. The August inflation also compares with 2.1 percent in August 2013.

 

The consumer expectation survey also pointed out that more Filipinos were less optimistic in the last quarter and in the next 12 months.

 

"For the next quarter, consumer sentiment declined slightly from a neutral outlook of 0 to -1 percent as respondents anticipated higher prices of commodities and expressed concerns over the utilization of government funds," the central bank said.

 

"Consumer outlook for the next 12 months was likewise less favorable but remained positive," it added.

 

As demand is expected to pick up in the run up to the Christmas season, Neri said higher prices of commodities are a concern for consumers.

 

"Prices are unable to normalize immediately after we experienced supply bottlenecks. This can affect how people will spend towards the Christmas season," he noted. 

 

The survey was conducted from July 1 to 12, involving 6,106 households culled from the National Statistics Office (NSO) master list. – VS, GMA News