Consumer confidence in the Philippines improved in the first quarter of 2026, although households turned less upbeat about the months ahead as concerns over inflation, corruption, and governance weighed on sentiment, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP’s latest Consumer Expectations Survey showed the current-quarter confidence index (CI) rose to negative 15.8 percent in Q1 2026 from negative 22.2 percent in Q4 2025, signaling reduced pessimism among Filipino households. Consumers cited expectations of higher earnings, more stable jobs, additional income sources, and more family members joining the workforce.
Despite the improved first-quarter outlook, consumers became more cautious for the rest of the year. The quarter-ahead CI slipped to 1.8 percent from 3.6 percent, while the year-ahead CI declined to 9.6 percent from 11.8 percent. The softer outlook reflected worries over graft and corruption in government, higher inflation, and ineffective public policies and programs.
The survey, conducted from Jan. 22 to Feb. 5, 2026, captured sentiment before the onset of the Middle East conflict, meaning any impact from rising geopolitical tensions and oil prices may emerge in future survey rounds.
Inflation expectations remained relatively well-anchored despite rising concerns. Households’ year-ahead inflation forecast edged up to 2.7 percent from 2.6 percent in the previous quarter, still below the BSP’s 3 percent target for 2026 and within its tolerance range.
The BSP said it continues to closely monitor the possible effects of the Middle East conflict on domestic prices and broader economic activity, adding that it stands ready to respond with appropriate monetary policy measures should oil-driven inflationary pressures become more persistent.
The CES, a nationwide quarterly survey of about 5,500 households, serves as one of the BSP’s key surveillance tools in assessing consumer sentiment and shaping monetary policy decisions. PR
