Consumer Sentiment Pessimistic This Q4

The Bangko Sentral ng Pilipinas bared that based on the Q4 2021 survey results, consumer sentiment in the country was more pessimistic as the overall confidence index (CI) declined to -24 percent from –19.3 percent in Q3 2021.

Photo Insert: A staff worker at a local supermarket arranges shelves of canned goods.

The lower negative index recorded in Q4 2021 showed that the number of households with pessimistic views increased relative to the number in Q3 2021 and continued to surpass those with optimistic views.

According to respondents, their weaker outlook during Q4 2021 was brought about by their expectations of: (a) higher unemployment rate, (b) low income, (c) ongoing COVID-19 pandemic, higher cases, and restrictions/lockdown/travel ban, (d) faster increase in the prices of goods, and (e) less working family member.

Meanwhile, consumer sentiment for Q1 2022 and the next 12 months improved as the CI increased to 9.3 percent and 23.6 percent from the Q3 2021 survey result of 2.7 percent and 18.6 percent, respectively.

Respondents attributed their optimism to the following expectations: (a) availability of more jobs and permanent employment, (b) additional and high income, (c) effective government policies and programs, and (d) good governance.

The more pessimistic consumer sentiment in Q4 2021 was reflected across the three component indicators of consumer confidence, with the economic condition recording the lowest CI, followed by family financial situation and family income.

Consistent with the national trend, consumer confidence across income groups also weakened in Q4 2021. Aside from the reasons cited for the more pessimistic outlook in Q4 2021, consumer confidence of respondents in the high-income group waned amid concern about their job security.

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