Q2, Q3 2022 Consumer Confidence Improves, Also for Next 12 Months
Consumer sentiment is less pessimistic in Q2 2022, and more optimistic for Q3 2022 and the next 12 months.
The consumer sentiment in the country was less pessimistic in Q2 2022, as the overall confidence index (CI) improved to -5.2 percent from -15.1 percent in Q1 2022.
The higher CI, albeit remaining negative, indicated that the number of households with optimistic views increased, but was still fewer than those with pessimistic views.
According to the respondents, their improved outlook in Q2 2022 was brought about by their expectations of the availability of more jobs and permanent employment; positive developments related to the COVID-19 situation, such as the declining number of COVID-19 cases and the consequent easing of travel and social gathering restrictions; and additional and high income.
Similarly, the consumer sentiment turned more upbeat for Q3 2022 and the next 12 months as the CIs increased to 11.2 percent (from 6.4 percent) and 32.4 percent (from 30.4 percent), respectively.
Survey respondents attributed their more favorable outlook in the near term to expectations of more available jobs, good governance, positive developments in the COVID-19 situation, and additional and high income.
In Q2 2022, consumer outlook improves across the three component indicators and across income groups
Consistent with the national trend, consumer sentiment improved in Q2 2022 across income groups and in the three component indicators, namely: the country's economic condition, family's financial situation, and family income.
Aside from the reasons previously cited for the less pessimistic outlook in Q2 2022, the low-income group anticipated good governance as another reason for their more favorable sentiment in Q2 2022.
Consumer spending is less upbeat for Q3 2022
The households' spending outlook on goods and services for Q3 2022 was less upbeat as the CI declined to 38.3 percent from 40.4 percent in the Q1 2022 survey result.
Buying sentiment in Q2 2022 is more buoyant, while buying intentions for big-ticket items over the next 12 months remained steady
The percentage of households in the country that considered Q2 2022 as a favorable time to buy big-ticket items increased to 15.2 percent from 12.4 percent in Q1 2022.
Further, the percentage of households in the country that considered the next 12 months as a favorable time to buy big-ticket items remained relatively steady at 6 percent from 5.7 percent in Q1 2022.
The percentage of households with savings decreases in Q2 2022
In Q2 2022, the percentage of households with savings declined to 29.7 percent from 31.1 percent in Q1 2022.
Consumers expect the unemployment rate to decline, interest rates to rise, and the peso to depreciate in Q2 2022, and for Q3 2022 and the next 12 months; Inflation may breach the target range of 2 to 4 percent for 2022
Consumers anticipate that interest rates may increase, the peso may depreciate against the U.S. dollar, and the unemployment rate may decline in Q2 2022, and for Q3 2022 and the next 12 months. Households also expect that the prices of consumer goods and services may rise faster in Q2 2022, and for Q3 2022 and the next 12 months.
This stemmed from concerns over higher household spending for food and utilities, and limited supply of goods and services. Consumers expect the inflation rate to breach the upper end of the government's inflation target range of 2 to 4 percent for 2022 — at 5.7 percent for the next 12 months.
OFW remittances are still mainly used for food and other household needs, education, and medical expenses in Q2 2022
In Q2 2022, 97.5 percent of the 322 OFW household respondents indicated that remittance proceeds were used for food and other household needs, while 58.4 percent and 53.4 percent apportioned their remittances for education and medical expenses, respectively.
About 1 in every 4 households availed of a loan in the last 12 months
In Q2 2022, 24.7 percent availed of a loan in the last 12 months, lower than the 25.8 percent recorded in Q1 2022. For respondents who found it difficult to apply for a loan, some reasons they cited include too many requirements, or difficulty in completing them, lack of collateral, and income is too low to support loan application.