Easing food and oil prices and expectations of vigorous Christmas holiday spending lifted consumer confidence in the Philippines in the fourth quarter from the previous three months, a Bangko Sentral ng Pilipinas (BSP) survey showed on Thursday.

Filipinos also expect to increase spending on basic goods and services in the first quarter next year despite more evidence of a sharp global economic slowdown in 2009, the survey showed.

But lower incomes and the elevated cost of basic commodities still weighed on buying sentiment, as the consumer confidence index remained in negative territory for the fourth quarter at -40.3 percent, although higher by 12.5 index points than in the third quarter.

The index for the first quarter of 2009 also climbed 13.9 index points from the previous survey but remained in negative territory at -11.2 percent, the central bank said.

Survey respondents said easy payment terms and appliance sales in December had made consumer durables more affordable.

Lower interest rates on housing loans also contributed to favourable buying conditions in the fourth quarter, the survey said.

Consumers also expect continued depreciation in the peso and higher unemployment in the next 12 months.