Consumers turned less optimistic in the first quarter, compared to the fourth quarter, amid expectations of higher prices of goods and low income, results of the latest Consumer Expectations Survey conducted by the Bangko Sentral ng Pilipinas show.
Results of the survey showed that while the consumer sentiment index remained in the positive territory, it dropped to 1.7 percent in the first quarter from 9.5 percent in the fourth quarter of 2017. It was also the lowest level since the third quarter of 2016.
Respondents cited the higher prices of goods, low income and rise in household expenses as major reasons. They also mentioned the increase in household debts, occurrence of typhoon and other calamities and poor harvest.
“The lower but positive consumer index indicates that the number of optimists decreased but continued to outnumber the pessimists,” Bangko Sentral assistant governor Francisco Dakila Jr. said in a news briefing.
“The less optimistic consumer sentiment in Q1 2018 was carried to the near term and the next 12 months due to anticipation of continued increase in prices of goods that, in turn, increase household spending, as well as low earnings of the family,” he said.