According to the Bangko Sentral ng Pilipinas (BSP), this shift reflects rising expectations of higher household income, better employment opportunities, and additional sources of income for families.
However, the outlook for the next 12 months is less upbeat, with the confidence index declining to 9.9%, down from 13.5% in the previous survey.
This dip in confidence for the year ahead signals consumer caution amid rising concerns over inflation, interest rates, and unemployment. Households expect inflation to average 5.9% over the next year, well above the government’s target range of 2% to 4%.
During the third quarter of 2024, consumer sentiment also improved, with the confidence index becoming less negative at -15.6%, compared to -20.5% in the second quarter of the year.
Across all income groups — low, middle, and high — Filipinos expressed a more positive outlook for their financial situation and the country's economic condition.
However, concerns over big-ticket purchases grew, with the confidence index for buying durable goods slipping to -68.9% from -64.5%.
Despite improving short-term optimism, challenges remain. Fewer households reported having savings, while more availed of loans. Additionally, consumers anticipate higher interest rates, a weaker peso, and rising unemployment for the rest of 2024.
The mixed outlook suggests that while Filipinos are optimistic about the near future, broader economic concerns could temper their confidence over the long term.
