ASEAN KEY DESTINATIONS
Philippine consumer confidence index slips to 8.7% in Q1 – BSP survey
The consumer confidence index (CI) reflected a 0.5 percentage point decline in the first quarter of the year, compared with the fourth quarter of 2016, results of the latest Bangko Sentral ng Pilipinas (BSP) survey showed Friday.
The overall CI slightly declined to 8.7 percent from 9.2, according to the BSP Consumer Expectations Survey (CES).
“Despite the modest decline in the CI, consumer confidence remained positive, registering the second highest reading since the start of the nationwide survey in 2007,” BSP Deputy Director for Economic Statistics Teresita Deveza told reporters in a press conference.
BSP Deputy Governor Diwa Guinigundo noted a positive reading indicates that the number of optimists continued to outnumber pessimists.
“This is the third straight quarter that the CI is in positive territory,” Guinigundo said.
The central bank computes the index as the percentage of households that answered in the affirmative, minus the percentage of those that answered in the negative with respect to their views on a given indicator.
“The current quarter’s relatively steady outlook stemmed from the counterbalancing of the number of respondents that reported more positive views on the economy versus those with negative views,” Deveza said.
Respondents who were less optimistic attributed their negative views to higher prices of goods and household expenditures, poor harvest and unfavorable weather conditions.
Respondents with positive views cited the following reasons:
Improvements in the peace and order situation
Additional family income due to higher salary and stronger business activity
Availability of more jobs and increase in the number of employed family members
Effective government policies
Consumer confidence is measured across three components, namely the country's economic condition, family financial situation and family income.
“For the first quarter 2017, consumer sentiment on the three indicators was mixed. The outlook on the economic condition of the country was unchanged while that on family financial situation was broadly stable,” Deveza said.
The first quarter CES was conducted from January 19 to 31. The quarterly survey covered a sample size of 5,574 households in Metro Manila and areas outside the National Capital Region.
Of the sample size, 5,357 households equivalent to a response rate of 96.1 percent responded to the survey.
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