Filipino consumers turned more pessimistic about the economy in the first quarter of 2025, mostly because of concerns over accelerating inflation, declining incomes and fewer job prospects, according to the Bangko Sentral ng Pilipinas.
The BSP’s latest Consumer Expectations Survey (CES) showed that the overall consumer confidence index (CI) dropped to -13 percent in the first quarter of 2025 from -11.1 percent in the previous quarter and -10.9 percent in the first quarter of 2024.
A negative CI means more respondents are pessimistic than optimistic.
The current quarter CI, however, was better than during the peak of COVID-19 effects in the third quarter of 2020, when it registered an all-time low of -54.4 percent.
It has yet to return to the positive levels observed from the third quarter of 2019 to the first quarter of 2020, the BSP said.
“Consumer confidence has been strongly influenced by stable inflation and favorable labor market conditions. Accordingly, consumer sentiment would benefit from coordinated efforts across relevant government agencies and the private sector to address inflationary pressures and support employment,” the BSP said.
Similarly, consumers in the euro area, Japan, South Korea, Taiwan, Thailand, and the United States were also more pessimistic this year.
The results gleaned from the CES help the BSP formulate monetary policy.
In response to the survey results, the BSP reiterated its commitment to its mandates, among which is helping keep inflation manageable.
Based on its latest estimates, inflation—or the increase in prices of goods and services—is expected to remain manageable and within the target range of 2 percent to 4 percent from 2025 to 2027.
Within-target inflation supports investments and job creation, it was explained.
Aside from their current sentiment, consumers were also asked about their sentiment for the succeeding quarter and the next 12 months.
Survey results indicated that consumer sentiment for the next quarter reverted to negative territory, with the CI settling at -0.5 percent, down from 4.2 percent in the previous quarter and 2.7 percent in the first quarter of last year.
Consumers expect economic prospects to improve in the next 12 months.
Survey results showed a positive CI at 12.4 percent for the next 12 months, unchanged from the previous quarter but slightly lower than the 13.4 percent recorded in the first quarter last year.
