Consumer sentiment improves in Q3 — BSP

Consumer sentiment in the country registered an improvement compared with that seen in the previous quarters although it remained in the negative, according to the latest Consumer Expectation Survey by the Bangko Setnral ng Pilipinas.   The consumer confidence index for the third quarter reached -13.3 percent—better than the -19.5 percent for the second quarter and the -18.7 percent for the third quarter of last year— amid projections that the economy can sustain a respectable pace of growth over the short term.   “The improvement in the index meant that the percentage of optimists rose, but that they were still outnumbered by the pessimists,” Rosabel Guerrero, director for economic statistics at the BSP, said at a press conference Friday. The latest CES was conducted from July 2 to 13 nationwide. It covered 5,604 households and generated a response rate of 96.9 percent. Guerrero said an encouraging result of the survey was that the “next quarter” and the “next 12 months” indices were positive. The latest “next quarter” index, which indicate the outlook of respondents on their own financial standing and the economy’s performance for the coming quarter, hit +6 percent—a turnaround from the -2.4 percent recorded in the survey done in the previous quarter, and better than the +1.5 percent registered in the survey done a year ago. The “next 12 months” index, which showed the outlook of respondents for the next 12 months settled at +16.2 percent. This was better than the +10 percent recorded in the survey done in the previous quarter and the +11.7 percent registered in the survey done a year ago. BSP Deputy Governor Diwa Guinigundo said the positive indices for the next quarter and the next 12 months indicated a potential rise in consumer spending during those periods. Consequently, he said, the economy may be expected to be even more supported by household consumption over the near term.       The positive indices for the coming quarter and the next 12 months were attributed to expectations that the economy will grow further, help create more jobs, and thus increase household incomes.—KBK, GMA News