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CONFIDENCE among Filipino consumers fell to an all-time low in the third quarter, while businesses were at their most pessimistic point in more than 11 years as the pandemic took its toll on the economy, latest surveys from Bangko Sentral ng showed. Pilipinas (BSP).
The current quarterly consumer confidence index (CI) fell to -54.5%, the lowest since the national survey began in the first quarter of 2007, according to the BSP.
Business withto beThe difference also slid into negative territory with -5.3%, its lowest level since the -23.9% registered in the to befirst quarter of 2009 in the middle of to befinancial crisis.
The central bank did not conduct the survey in the second quarter due to lockdown restrictions imposed to slow the spread of the 2019 coronavirus disease (COVID-19).
“[For consumers], the negative sentiment was attributed to the COVID-19 pandemic. Other reasons cited by respondents were the following: high unemployment rate and fewer working family members, low and reduced income and a faster rise in property prices, ”said the director of the BSP Department of Economic Statistics. , Paolo M. Alegre, Jr. in an online brieto beng on Thursday.
Philippine consumers remain pessimistic during the fourth quarter, with the CI falling into negative territory at -4.1%. Its spending outlook also hit a record low of 26.4%, “indicating a contraction in consumer spending” during the holiday season.
However, consumers are more optimistic for the next 12 months with the CI at 25.5% compared to the 19.9% observed in the first quarter survey for the next 12 months.
“The consumer outlook was more optimistic for the next 12 months due to expectations of an end to the COVID-19 pandemic or a return to normalcy, as well as consumer anticipation of the following: availability of more jobs ; additional or high income, and stable prices of goods, ”said the BSP.
BUSINESS CONFIDENCE ALSO
Meanwhile, business withto beThe difference turned negative in the third quarter, as many companiesffaffected by the pandemic and the economic slowdown.
“They noted a decrease in orders, sales and revenue, a slowdown and a temporary closure of business operations, and some concerns about government policies in handling COVID-19,” said Alegre.
For the fourth quarter, business sentiment remained sluggish, with the CI falling to 16.8% from 42.3% in the first quarter survey.
“The less optimistic outlook of respondents for the (fourth quarter of 2020) was mainly associated with expectations that the effThe effects of the COVID-19 pandemic affecting the volume of orders, sales and revenue, and the economic activity in general, in general, ”said the BSP.
“Similarly, the business outlook for the country’s economy was less optimistic over the next 12 months, as the CI decreased to 37.5% from 55.8% in the survey results for the first quarter of 2020.”
The job outlook index for the next quarter and the next 12 months was also bleak at -5.5% and -2.1%, which could mean more layoffs in the coming months.
The business expectations survey was conducted from July 8 to September 10 among 1,517 businesses, while the consumer expectations survey covered 5,563 households from July 1 to 14. – Luz Wendy T. Noble
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