Manila: Consumers expect economic prospects to improve in the next 12 months, a Bangko Sentral ng Pilipinas (BSP) survey released late Thursday showed. Results of the first quarter 2025 Consumer Expectations Survey (CES) indicated that while consumer sentiment was more pessimistic in the first quarter of the year, optimism remains for the upcoming year.

According to Philippines News Agency, the survey results showed that the overall confidence index (CI) was at -13 percent, down from -11.1 percent in the fourth quarter of 2024. The BSP identified the reasons for consumer pessimism in the first quarter of 2025 as concerns over the faster increase in prices of goods and services, lower household income, and fewer available job opportunities.

However, the survey highlighted that consumer sentiment for the next 12 months remains optimistic, based on an unchanged CI from the fourth quarter of the 2024 survey round at 12.4 percent. The BSP stated that the sustained optimism is due to expectations of additional and higher income, more available jobs, salary increases, and stable prices of goods and services.

The CES is a quarterly survey that samples about 5,000 households in the Philippines. It examines three component indices of the consumer outlook: overall economic condition, family financial situation, and family income. The survey results are among the factors the BSP considers for its monetary policy decisions.

In light of the survey findings, the BSP reiterated its commitment to its mandates, including managing inflation. Current estimates suggest that inflation is expected to remain manageable and within the target range of 2 to 4 percent from this year through 2027. The BSP emphasized that maintaining inflation within this target supports investments and job creation.