Sep 10, 2015 Uncategorized Comments Off on Consumer confidence improved in Q3 survey (Business Mirror (Philippines))
The availability of more jobs, rising family income and receding concern over debt, as well as prospectively less instances of perceived corruption in the public sector, pushed consumer confidence still higher in the latest survey conducted by the Bangko Sentral ng Pilipinas (BSP).
The results of the BSP’s third-quarter survey show consumer enthusiasm improving to minus 11.6 percent, from minus 16.2 percent a quarter earlier.
The latest on consumer sentiment bodes well for the $285-billion Southeast Asian nation looking to expand this year at a more moderate 7-percent clip in terms of local output, or the gross domestic product.
There is a general consensus among various economists and observers for local output averaging lower at more or less 6.2 percent.
Apart from an increasing likelihood in finding employment among Filipinos, consumers pointed to better harvests and production of goods, as well as stronger economic activities down the line, for the marked improvement in consumer sentiment during the period.
Also cited as a key driver of consumer optimism was the anticipated economic boost expected from the continued government implementation of its Conditional-Cash Transfer Program-locally dubbed as the Pantawid Pamilyang Pilipino Program-which adds a measure of liquidity to an already liquid financial system.
That more and more consumers believe there is less corruption in the public sphere and greater and more transparent governance happening all around only served to boost consumer confidence for the period, the BSP said.
Confidence index (CI) are computed as the percentage of optimistic respondents minus the percentage of consumers that indicated otherwise. A negative CI this quarter means that the number of optimists increased, compared to a quarter earlier, but that pessimists continued to exceed the number of optimists in the subsequent quarter.
The outlook of consumers in the Philippines mirrored the upward sentiment of consumers in Australia, Euro area, South Korea, the United Kingdom and the United States, but was in contrast to the less optimistic views of those in Canada, China, Indonesia, Japan, Thailand and Taiwan for the third quarter.
For the quarter ahead, consumer confidence surged higher to 5.8 percent.
Expectations of additional family income, increasing employment opportunities and brisker businesses [on] the back of more investment opportunities triggered by the stronger confidence gained from the country’s higher credit rating, lesser debt payments and more overseas Filipino workers in the family fueled the strong consumer sentiment for the next quarter, the BSP said.