ASEAN KEY DESTINATIONS
Consumer confidence slips to 10.2% in Q3
The consumer confidence index (CI) dropped 2.9 percentage points in the third quarter of the year, results of the latest Bangko Sentral ng Pilipinas (BSP) survey showed Friday.
The overall CI decreased to 10.2 percent from 13.1 percent, according to the BSP Consumer Expectations Survey (CES).
According to the BSP, respondents attributed their less favorable outlook on the following factors:
Higher commodity prices which could lead to higher household expenditures
Peace and order problems (particularly the crisis in Marawi City)
Low or no increase in income
Increase in the number of unemployed persons
"Despite the decline in the CI, consumer confidence remained high, registering the second highest reading since the start of the nationwide survey in first quarter of 2007," the BSP said in a statement.
"Respondents also cited other concerns on occurrence of calamities during the third quarter and poor health," the central bank said.
"For the third quarter, consumer sentiment on the three indicators was mixed, as optimism was lower on the country’s economic condition, higher on family’s financial situation and broadly steady on family income," the BSP said.
A positive but lower reading in the third quarter indicated that the number of optimists declined but continued to outnumber the pessimists.
Union Bank of the Philippines chief economist Ruben Carlo Asuncion said the decline in consumer confidence is temporary. "Temporary, because economic growth is still expected. Growth has been largely driven by domestic demand," he said.
The BSP computes the index as the percentage of households that answered in the affirmative, minus the percentage of households that answered in the negative with respect to their views on a given indicator.
Consumer confidence is measured across three component indicators, namely the country’s economic condition, family financial situation, and family income.
The third quarter CES was conducted from July 1 to 15. The quarterly survey covered a sample size of 5,597 households in Metro Manila and areas outside National Capital Region.
Of the sample size, 5,430 households responded to the survey, equivalent to a response rate of 97 percent from 95.5 percent in the second quarter.
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