BSP survey: Consumer confidence slips in Q2

The consumer confidence index (CI) reflected a 12.28 percent decline in the second quarter of the year compared with the previous quarter, the latest Bangko Sentral ng Pilipinas (BSP) survey showed.

The overall CI dipped to -6.4 percent from -5.7 percent, according to the BSP Consumer Expectations Survey (CES).

The BSP computes the index as a percentage of households that answered in the affirmative, minus the percentage of households that answered in the negative when asked for their views on a given indicator.

Though the CI has never touched positive territory, the latest reading is the second highest since the nationwide survey started in the first quarter of 2007.

"This indicates that there are fewer pessimists than before, although they continue to outnumber optimists," noted Diwa Guinigundo, BSP deputy governor for Monetary Stability Sector, said in a text message.

Respondents who were less pessimistic noted their outlook for the quarter reasoned that there was:

• an increase in the number of employed family members

• an increase in family income

• lower household expenses and debts

• improvement in peace and order

Other factors cited were the assistance from government such as flagship anti-poverty measure Pantawid Pamilyang Pilipino Program (4Ps), the coming change in government administration, and the election of new government officials.

"Their positive sentiments were however counterbalanced by the adverse effects of El Niño on crop production which resulted in poor harvest," the central bank said.

Consumer confidence is measured across three component indicators, namely the country’s economic condition, family financial situation, and family income.

"We are quite bullish that given the close correlation between consumer expectations and the national income accounts, we can expect sustained high economic growth through the remaining quarters of the year," Guinigundo said.

The CES is a quarterly survey of more than 5,000 households in Metro Manila and areas outside National Capital Region. – VDS, GMA News