Improved consumer confidence: According to the latest Consumer Expectations Survey of the Bangko Sentral ng Pilipinas, confidence among Filipino consumers for the first quarter of 2025 and the next 12 months showed significant improvement.
Optimism is driven by expectations of higher incomes, additional income sources, and more job opportunities, the central bank said in a statement.
- Better outlook across income groups: Consumer sentiment improved across all income levels — low-, middle-, and high-income groups — and key indicators such as the country’s economic condition, family income, and financial situation.
- Big-ticket purchases: Consumers are less hesitant about buying big-ticket items, with confidence indicators for such purchases becoming less negative during the fourth quarter of 2024, reflecting greater financial optimism.
- Macroeconomic concerns: Despite improved confidence, consumers expect higher interest rates, a weaker peso, and increased unemployment. Inflation expectations have moderated but remain above the government’s target of 2-4 percent.
- Decline in household savings: The percentage of households with savings dropped to 25.6 percent in the fourth quarter of 2024 from 29 percent in the previous quarter, signaling potential financial strain. Loan uptake remained unchanged at 25.5 percent.
This improved consumer sentiment points to growing optimism but highlights lingering economic challenges such as inflation and unemployment expectations, the central bank said.
