Filipino consumers may have become more upbeat about the country’s economic prospects in the third quarter due to expectations of higher earnings, additional sources of income and more stable employment, but they expect inflation to accelerate faster.
Based on the Bangko Sentral ng Pilipinas’ (BSP) Consumer Expectations Survey (CES) Report for the 3rd Quarter of 2026, the overall Consumer Confidence Index (CI) improved to -29.8 percent in the third quarter, compared to the -42 percent in the second quarter.
The CES showed better overall consumer confidence indices across all reference periods-the current quarter, next quarter and next 12 months.
However, the CI is still in the negative territory, which means more respondents are pessimistic than optimistic.
The central bank said the overall consumer outlook index is computed as the average of the three component indices, namely: overall economic condition, family financial situation, and family income.
The survey showed that the economic condition index improved to -59.4 percent in the third quarter of 2026 from -71.1 percent in the previous quarter.
Family financial situation index was also better in the third quarter of 2026 at -20.3 percent from the -36.2 percent in the second quarter.
Consumers’ family income index improved to -9.7 percent in the third quarter period from the -18.7 percent in the second quarter of 2026.
Purchases
The CES showed that Filipino consumers’ sentiment turned less pessimistic for the next quarter as the confidence index improved to -0.8 percent from the -16.3 percent in the second quarter of 2026.
Filipino households, meanwhile, have become more upbeat about the next 12 months as the index improved to 9.1 percent from the 0.2 percent index in the second quarter of 2026.
‘Consistent with the more favorable outlook for the year ahead, more households indicated that they were likely to purchase big-ticket items, such as real estate and motor vehicles, over the next 12 months,’ the central bank said in a statement.
Meanwhile, stronger saving prospects, coupled with weaker spending plans for day-to-day household expenses and lower borrowing intentions, suggest that households remain ‘prudent’ in managing their finances, the BSP said.
The consumer expectations survey also revealed that consumers expect inflation to reach 4 percent in July to September, higher than their 3.3-percent inflation expectation in the second quarter of 2026.
This exceeded the BSP’s 3-percent inflation target for 2026 but remained within the 4-percent tolerance ceiling.
Consumers expecting higher inflation cited the following concerns: perceived limited measures to mitigate price pressures, rising food and utility prices and tighter supply conditions.
The BSP said it continues to monitor developments in the Middle East and their potential effects on business and consumer sentiment, spending, and investment.
‘These indicators are among those considered in the BSP’s monetary policy decisions,’ the central bank said.