FILIPINO consumers turned less optimistic about the near-term and 12-month outlook, even as sentiment improved in the first quarter of 2026, according to the Bangko Sentral ng Pilipinas (BSP).
The central bank’s Consumer Expectations Survey showed the confidence index for the next quarter (Q2 2026) declined to 1.8 percent from 3.6 percent, while the outlook for the next 12 months eased to 9.6 percent from 11.8 percent. The more cautious view reflects concerns over higher inflation, governance issues and perceived policy inefficiencies.
Despite the softer outlook, consumer sentiment for the current quarter improved. The confidence index rose to -15.8 percent in Q1 2026 from -22.2 percent in the previous quarter, indicating fewer pessimistic households.
Households cited expectations of higher earnings, stable jobs, additional income sources and more working family members as key drivers of improved sentiment.
Still, consumers anticipate rising inflation, interest rates and unemployment, alongside a weaker peso over the coming months. The year-ahead inflation forecast edged up to 2.7 percent, remaining within the BSP’s target band.
Spending sentiment weakened, with the outlook for goods and services slipping to 40.3 percent from 43.7 percent, reflecting caution across major expense categories, including food, transport and housing.
Meanwhile, saving sentiment strengthened, as the saving index climbed to 12.4 percent from 4.6 percent, suggesting households are bracing for potential economic headwinds.
The survey, conducted from Jan. 22 to Feb. 5, covered 5,358 households nationwide and captured sentiment before the escalation of Middle East tensions. / KOC