HIGH commodity prices and lower incomes have turned the consumer sentiment in the Philippines negative for the first time in 13 quarters, according to the latest data released by the Bangko Sentral ng Pilipinas .
Consumers, the BSP said, expect higher inflation, interest and unemployment rates, and a weaker peso in the next quarter and 12 months. “Specifically, consumers expect that the inflation rate may average at 5.5 percent for the next 12 months, above National Government’s inflation target range of 2 to 4 percent for 2024-2025,” it added.
“Consumers are more hesitant about buying big-ticket items in the second quarter of 2024. The consumer sentiment on buying big-ticket items for the second quarter of 2024 was more pessimistic as the CI became more negative at 64.5 percent from 62.6 percent in the first quarter of 2024,” the BSP said in a statement.
For the third quarter of 2024, the BSP said, the country’s business confidence weakened as the overall CI also fell to 43.7 percent from 48.1 percent in the first quarter of the 2024 survey result. Firms were also worried that ongoing international conflicts may push oil prices higher while business activity slows down due to El Niño-induced extreme weather conditions.