More Pinoys upbeat about economy – BSP

MANILA, Philippines – More and more Filipinos are regaining their confidence in the economy as the Bangko Sentral ng Pilipinas (BSP) reports an improvement in the Consumer Confidence Index in the last quarter of 2012. 

BSP data showed consumer sentiment improved as the overall Confidence Index (CI) rose from -13.3% in the 3rd quarter of the year to -10.4% in the 4th quarter. It is the second highest reading since the survey was started in the first quarter of 2007. 

The optimism was driven mainly by the positive outlook of low-income Pinoys. The BSP said the view of low-income Filipinos on family income remains steady as opposed to the less optimistic outlook of middle- and high-income groups.

“The higher, but still negative, CI in the 4th quarter 2012 means that the number of households with an optimistic outlook increased but they continued to be outnumbered by those who think otherwise,” the BSP explained.

“The favorable outlook on the economic condition of the country was largely driven by the sentiment of the low-income group which recorded the biggest improvement in the 4th quarter 2012 across income groups,” it added. 

The BSP said the following factors were cited by respondents for their improved optimism: 

• More jobs as a result of more working family members
• Additional income and higher salary
• Increasing investment inflows
• Improvements in infrastructure
• Better governance

The BSP said consumer expectations for the next quarter and the year ahead remains positive with the CIs at 6.3% and 16.8%, respectively.

“This indicates that the optimists continued to top the pessimists for the next quarter and the year ahead. Consumers are confident that improvements in the economy and family finances will be carried over to the next 12 months,” the BSP said. – Rappler.com