RP consumer confidence at record-high in Q3 ‘10

September 17, 2010 10:11 am 

MANILA, Sept. 16 – Owing to sound macroeconomic fundamentals and expectations of good governance Filipino consumers’ confidence index (CI) registered its all-time high since 2007 in the third quarter of 2010.

Although still in negative territory at -14 percent, the CI jumped markedly from -28.7 percent in the previous quarter, results of Bangko Sentral ng Pilipinas’ (BSP) 3rd quarter 2010 Consumer Expectation Survey showed.

For the next three months, the CI reversed to positive territory at 15.3 percent after being in the negative for 11 quarters.

Similarly, expectations for the next 12 months improved to 33.4 percent in the current quarter from the 10 percent in the second quarter this year.

“Consumers expected that more favorable macroeconomic conditions would generate better employment and business opportunities, result in improved family finances and higher family income,” the report said.

BSP Assistant Governor Cyn Tuaño-Amador, in a briefing Thursday, said this trend was also observed in other Asian countries namely India, Indonesia, Singapore, China and Vietnam.

“(This trend was observed) as economic activity is expected to strengthen as global economic recovery gains traction and as concerns over the sovereign debt crisis in some parts of Europe have dissipated,” she said.

Relatively, BSP’s Department of Economic Statistics Director Rosabel Guerrero, during the same briefing, said respondents from the high-income group registered the highest confidence followed by those coming from the middle-income and the low-income group.

“Consumer confidence of the low-income group was the weakest among the three groups, even as a significant improvement in its outlook was observed across time,” she said.

CI of those from low-income group, or those with income of less than P10,000 stood at -23.3 percent from -52.2 percent in the previous quarter; the middle-income group at -12.1 percent from -56.1 percent; and the high-income group at -14.4 percent from -54.6 percent.

On selected economic indicators, the respondents see prices of basic goods, inflation, interest rate and unemployment to decrease while rate of price increases is expected to increase.

The survey also showed that because of the generally low inflation rate in the country, the number of respondents who expect their expenditures to rise dropped quarter-on-quarter.

“This development could be driven by the respondents’ expectations of subdued inflation over the course of the next 12 months,” it said.

The survey was conducted from July 1-15, 2010 to 5,774 households taken from the National Statistics Office Master Sample List of Household.

Response rate for this survey is 96.6 percent, higher than the previous survey’s 96 percent. (PNA)

vcs/JS

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