Increasing economic activity in the Philippines has made Filipinos third among the most optimistic consumers in 14 Asia-Pacific economies, according to a survey carried out by a US-based think tank
The Conference Board. India and China took the first and second rankings respectively, the report pointed out.
The survey, which was based on results of the latest Global Consumer Confidence Survey, witnessed the Philippines scoring 119 on the consumer confidence index (CCI) during the first three months of the year. However, this was four points lower than country’s CCI score of 123 in the fourth quarter last year.
Globally, the Philippines ranked fifth out of 65 economies after India, Saudi Arabia, China, and the United Arab Emirates.
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A CCI reading of above 100 means there are more optimistic than pessimistic consumers. The country was among the 20 out of 65 economies posting a CCI score above 100 for the quarter.
“Asia-Pacific had one of the highest levels of consumer confidence. Indeed, effective containment measures, fiscal stimulus packages in both advanced and emerging economies in the region, plus a comparative advantage in exports of goods and technology, helped maintain household finances, bolstered job prospects, and boosted confidence,” the report stated.
About 59% of Filipinos improved their sentiment on personal finances in the first quarter from 54% previously — higher than the 40% across Asia-Pacific from 26% in the fourth quarter. However, Asia-Pacific households were more concerned about their health, and less about the economy and job security, the report said.
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Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said the country’s labor activity was “constrained by the drop in their disposable incomes” due to the implementation of the enhanced community quarantine (ECQ) — the strictest form of lockdown — in late March which, in turn, caused the country’s CCI score to drop.
“Aside from the ECQ, rising inflation may have eroded consumer confidence as meat and vegetables took a bigger share of the consumer’s basket of goods and services. Meat was easily 20% more expensive in [first quarter of 2020] than the same time last year after all,” Neri stated. (AW)
