Metro Manila (CNN Philippines, April 16) — Consumer confidence in the country was already ebbing while the coronavirus outbreak was starting to flare up during the first quarter of this year, according to results of a Bangko Sentral ng Pilipinas survey released on Thursday.
The BSP’s Consumer Expectations Survey (CES) revealed the consumer confidence index stood at 1.26 percent at the end of the first quarter, compared to 1.31 percent in the last quarter of 2019.
The BSP said 5,406 households answered the first quarter survey, which was conducted from January 29 through February 10. It was during that period that the first cases of coronavirus infections were recorded in the country.
A positive CI means there are more optimists than pessimists, explained the BSP.
The availability of more jobs, effective government policies and programs such as the anti-drug campaign and Senior Citizens Act, and good governance led to a sustained upbeat outlook for respondents, the BSP survey showed.
However, among the concerns that dampened optimism was the faster increase in the prices of goods.
Inflation picked up in January to 2.9 percent from 2.5 percent in December with higher oil prices and additional “sin” taxes on alcoholic drinks and tobacco.
In February inflation eased somewhat at 2.6 percent as costs of transportation, electricity and fuel went down.
Other factors cited by the survey’s respondents were low income, higher household expenses, and the occurrence of Typhoon Tisoy, Taal Volcano eruption, and the COVID-19 outbreak towards the end of January.
The survey showed mixed sentiments on the three component indicators used to measure consumer outlook.
Respondents were more optimistic about their family’s financial condition but less confident with the country’s economic condition compared to the previous quarter. Their outlook on family income remained steady.
Among income groups, low-income earners were more optimistic than middle- and high-income ones.
The low-income group attributed its more favorable outlook to expectations of improvement in the peace and order situation and better road infrastructure.
More households also saved up in the first three months of 2020, with increases reported among middle-income households but fewer savers in the high- and low-income groups.
This was well before the government placed the entire island of Luzon under enhanced community quarantine as the incidence of coronavirus infections leaped dramatically by March.
Originally set until April 16, the lockdown has been extended until April 30, 2020 to contain the virus spread.
