Consumerswere more pessimisticthisquarteramida high jobless rate and rising prices, the Philippine central bank saidon Friday.
The overall confidence index fell to -24% from -19.3% in the third quarter, theBangkoSentral ng Pilipinas (BSP) said in astatement.
In contrast, businessesturned more optimistic as the confidence index returned to positive territory at 39.7%, its highest since the start of the coronaviruspandemic in March last year.This was a reversal from-5.6% seen in the third quarter.
Consumers said the weaker outlook was brought about by the unemployment rate, low income,restrictions to curb the coronavirus pandemic, faster increase in prices and fewer working family members, the BSP said.
“Consistent with the national trend, consumer confidence across income groups also weakened,”it added.
The central bank saidconsumer confidenceamongthe high-income group waned amid concernsabout job security.Buying sentiment for big-ticket items in the fourth quarter was steady at 13.4%.
The percentage of households that considered the next 12 months as a favorable time to buy big-ticket itemsroseto 5.1%from 4.1%in thepast quarter.
BSP Assistant Governor Iluminada T. Sicat said the consumer confidence index mighthave been affected by the timing of the survey, which washeld when Metro Manila was under a stricter lockdown or Alert Level 4.
“This may have affected the views of the consumer respondents,” shetold a news briefing.“That’s why there was a deterioration relative to quarter ago.”
In contrast, businessmenwere more optimisticthisquarter as COVID-19lockdownseased amid the vaccine rollout and as their sales improved.
Seasonal factors such as the uptick in demand during the holidays and the start of mining and milling seasons also backed business optimism.
“All types of trading firms are optimistic in Q4 2021 andaremore confident for the near term,” theBSP said.
Importers and domestic-orientedcompaniesturned optimistic, while exporters and dual-activitycompanies became even more confident.
The consumer report surveyed 5,665 householdsfromOct. 1to13, while the business surveyinterviewed1,511companies from Oct. 8 to Nov. 18.—Jenina P. Ibañez
