Despite growing economy Pinoys see no change in buying power – Kantar Worldpanel survey

Filipinos found their spending power unchanged in 2014 from a year earlier, even if the Philippine economy supposedly performed well last year, according to a survey done by consumer knowledge and insights company Kantar Worldpanel.

 

Almost half or 48 percent of Filipino consumers feel that their household purchasing ability is no different from that of 2013, the survey of 3,000 households in urban and rural areas showed.

 

About 27 percent said that their purchasing power has improved, while 24 percent said otherwise. 

 

A quarter of class D&E homes surveyed said their ability to purchase goods and services has diminished compared to 2013, while 19 percent of class ABC homes believed they their buying power has also decreased. 

 

Among the top concerns of Filipino consumers were rising food and commodity prices, natural calamities, rising fuel prices and health.

 

Last year, the Philippine gross domestic product (GDP) grew by 6.1 percent, after accelerated government spending helped the economy recover in the fourth quarter.

 

In the next six months, majority of the respondents see no improvement in their purchasing power, Kantar Worldpanel said.

 

However, 44 percent of households are optimistic about their future spending. Forty-seven percent in upscale residents surveyed and 43.2 percent in downscale homes see a better outlook when it comes to their purchasing power in the coming months.

 

Lourdes Deocareza, Kantar Worldpanel New Business Development Head, said such outlook hints of a bright future for the Philippine fast-moving consumer goods or FMCG market.

 

"The consumers’ optimistic outlook reflects a more prosperous economy in the months to come,” she said. – Danessa O. Rivera/VS, GMA News