Consumer Spending Seen To Increase In Q4

The Christmas spirit is on with consumer sentiment for the fourth quarter upbeat for the fourth quarter, according to a Confidence Index that the Bangko Sentral ng Pilipinas charted.

Photo Insert: It's beginning to look a lot like Christmas as the Philippines enters the "ber" months.

BSP data showed that households’ spending outlook on goods and services for Q4 2021 was more upbeat as the CI increased to 31.4 percent from 25.4 percent in the Q2 2021 survey result.

In fact, there is a buoyant outlook for consumer spending on big-ticket items. The percentage of households in the country that considered Q3 2021 as a favorable time to buy big-ticket items increased to 13.3 percent from 11.7 percent recorded in Q2 2021.

Furthermore, the percentage of households in the country that considered the next 12 months as a favorable time to buy big-ticket items rose to 4.1 percent from 3.6 percent in the Q2 2021 survey result.

Based on the Q3 2021 survey results, consumer sentiment in the country continued to improve for Q3 2021 as the overall confidence index (CI) was less negative at -19.3 percent from-30.9 percent in Q2 2021.

Notably, the consumer outlook has been improving steadily since Q3 2020, the quarter when the index reverted to negative mainly due to the COVID-19 pandemic.

The higher Q3 2021 CI, although remaining negative, showed that the number of households with optimistic views increased relative to the number in Q2 2021, but was still less than those with pessimistic views during Q2 2021.

According to respondents, their improved outlook during Q3 2021 was brought about by their expectations of (a) availability of more jobs and more working family members, (b) additional/higher income, and (c) effective government policies and programs, particularly in addressing COVID-19-related concerns, such as the availability and rollout of vaccines, provision of financial assistance, and easing of quarantine restrictions.

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