Connect with us

Hi, what are you looking for?


Q2 consumer confidence drops due to inflation


CONSUMER sentiment deteriorated in the second quarter due to concerns about inflation, low incomes, and persistent high unemployment, the Bangko Sentral ng Pilipinas (BSP) said, though it noted that the outlook is more positive over the next 12 months.

The BSP confidence index for the second quarter of the year fell to 6.4% in the first three months of the year from 9.3% in the final quarter of 2021, according to the results of its Consumer Expectations Survey issued on Friday. 

“Respondents’ less upbeat sentiment for Q2 2022 stemmed from their concerns about: (a) the faster increase in the prices of goods, (b) low to no increase in income and (c) high unemployment rate,” the BSP said in a statement.

Inflation is likely to breach 5% in May led by food and oil prices amid disruptions in global supply chains.

A BusinessWorld poll of 16 analysts yielded a median estimate of 5.4% for May inflation, the highest in more than three years, matching the midpoint of the 5% to 5.8% forecast by the BSP.

Some 40.4% of households surveyed said they expect increased spending on goods and services for the second quarter, from 29.6% at the end of 2021.

Households reporting a positive outlook for the next 12 months rose to 30.4% from 23.6% at the end of 2021.

“Respondents attributed their brighter year-ahead outlook to expectations of: (a) more available jobs, (b) additional and high income, (c) good governance and (d) salary increase,” the BSP said.

The survey indicated that households that consider the next 12 months a favorable time to buy big-ticket items increased to 5.7% from 5.1% at the end of 2021.

Respondents planning to buy property within the next 12 months increased to 6.3% from 4.2% previously. This was driven by the higher number of households that plan to acquire single-detached houses (at 52.1% from 39.4%), and apartment units (at 2.6% from 0.8%).

“When asked about the price range of real properties they intend to purchase in the next 12 months, majority, or 57.5% of the households indicated a range of P450,000 and below,” the report said.

Consumers expect interest rates to increase in the current quarter, the next quarter, and the next 12 months, the survey found.

Some 6.9% and 7.4% of households expressed their intention to apply for a loan in the second quarter and in the next 12 months, respectively.

Most respondents plan to seek unsecured loans.

The central bank’s latest Consumer Expectations Survey was conducted from March 21 to 31.

The BSP surveyed 5,282 households, with 2,720 (51.5%) from the NCR and 2,562 (48.5%) from the rest of the country. — Keisha B. Ta-asan

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



BW FILE PHOTO THE PESO rebounded versus the dollar on Thursday, returning to the P54 level, on lower global oil prices and as the...


REUTERS STOCKS declined further on Thursday as the Bangko Sentral ng Pilipinas (BSP) said headline inflation could have reached an almost four-year high in...


FERDINAND “Bongbong” Marcos, Jr. took his oath of office as the 17th president of the Philippines before Chief Justice Alexander Gesmundo at the National...


PHILIPPINE STAR/ WALTER BOLLOZOS By Arjay L. Balinbin, Senior Reporter A TRANSPORT group said on Thursday that the increase in the minimum fare for...


PHILIPPINE STAR FILE PHOTO FORMER Camariñes Sur Rep. Rolando “Nonoy” G. Andaya, Jr. passed away on June 30, his family announced. He was 53....


PHILIPPINE STAR/ WALTER BOLLOZOS OUTGOING Presidential Adviser for Entrepreneurship Jose Ma. “Joey” A. Concepcion III is recommending a halt to the government’s procurement of...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.