BSP: BUSINESSES OPTIMISTIC, CONSUMERS ARE PESSIMISTIC IN Q3 2024

Businesses remain optimistic but consumers are pessimistic about their prospect this quarter based on BSP’s survey (Photo courtesy of Philippine Star)

According to the latest surveys conducted by the Bangko Sentral ng Pilipinas (BSP), the consumer sentiment for the third and fourth quarter of the year improved, while business sentiment remained optimistic.

Based on the central bank's latest Consumer Expectations Survey (CES) and Business Expectations Survey (BES), consumer sentiment for the third quarter improved as the overall confidence index (CI) turned less negative at -15.6 percent from -20.5 percent in the second quarter.

The less pessimistic sentiment was attributed to expectations of higher income from wages, remittances, and other sources; additional sources of income; permanent employment and availability of more jobs; and additional working family members according to Officer-in-charge of the BSP Department of Economic Statistics Redentor Paolo Alegre Jr.

While the consumer confidence for the next 12 months was less optimistic as the CI declined to 9.9 percent from 13.5 percent as respondents attributed to the faster increase in the prices of goods and services, fewer available jobs, lower income and perceived pervasiveness of corruption in the government.

On the other hand, the overall business confidence index (CI) for the fourth quarter increased to 56.8 percent from the previous quarter’s 43.7 percent. 

Alegre said, “The current-quarter CI has considerably improved since the peak of the COVID-19 effects in the third quarter of 2020, when it registered at -5.3 percent. However, it has not yet reached its pre-pandemic average level of 41.6 percent and has just been hovering above 30 percent since then.”

Based on the BES, the respondents attributed their increased optimism to expectations of higher demand for products and services during the holidays, lower interest rates, easing inflation and better economic conditions.

For the next 12 months, businesses were more upbeat as the confidence index rose to 58 percent from the previous quarter’s 56.5 percent which was attributed to expectations of sustained strong demand for products and services, business expansions, lower inflation as well as the launch of new and improved products and services.

Source: Philippine Star

Be part of ImHenyo community!

Get featured by sharing your stories, news, and comments

Email us at [email protected]