Consumer confidence in the economy declined further in the first quarter of 2025, according to the Bangko Sentral ng Pilipinas (BSP), as concerns over rising prices, shrinking incomes, and weaker job prospects weighed heavily on household sentiment.
The BSP’s latest Consumer Expectations Survey (CES) revealed that the overall consumer confidence index (CI) fell to -13.0 percent, from -11.1 percent in the previous quarter and -10.9 percent in Q1 2024. A negative CI indicates that more households remain pessimistic than optimistic about economic conditions.
The decline is significant for monetary policy, as the CES is among the indicators the BSP uses in its policy assessments. In response, the BSP reaffirmed its commitment to price stability, emphasizing that inflation is projected to stay within the 2.0–4.0 percent target range through 2027—supporting broader macroeconomic stability and consumer purchasing power.
Despite near-term concerns, consumer sentiment for the next 12 months remains optimistic, with a CI of 12.4 percent, holding steady from the previous quarter, albeit slightly below the 13.4 percent recorded a year earlier. However, short-term outlooks dimmed, with expectations for the next quarter dropping back to negative territory at -0.5 percent, reversing gains from previous periods.
The BSP reiterated its role in keeping inflation manageable, noting that stable prices are key to sustaining investment, consumption, and job creation amid evolving consumer sentiment.
