Consumer confidence hits 2-year high

Posted at 12/14/2012 7:07 PM | Updated as of 12/16/2012 12:06 PM

MANILA, Philippines - Consumer sentiment in the fourth quarter improved, but still remained in negative at -10.4% from -13.3% in the third quarter, according to the latest Consumer Expectations Survey (CES).

The latest index was the second highest reading since the nationwide survey started in the first quarter of 2007.

The Bangko Sentral ng Pilipinas director Rosabel Guerrero said the improved consumer sentiment is because of the Philippine economy's favorable performance.

Respondents cited more jobs, additional income and higher salary, increasing investment inflows, improvements in infrastructure and better governance as reasons for their improved sentiment.

Consumer confidence index is computed as the difference between the percentage of optimistic households and the percentage of the pessimistic ones. The consumer confidence index has always been in negative since it started in 2007.

The BSP also noted that consumer expectations for the next quarter and the new year were positive with the consumer confidence index at +6.3 percent and +6.8 percent, respectively. This indicated that optimists outnumbered pessimists in the next quarter and the year ahead.

Guerrero said consumers are confident improvements in the economy and family finances will be carried over in the next 12 months.

The survey was conducted by the BSP from October 1-12. It covered 5,789 households.