Filipino consumers became more pessimistic about the country’s economic outlook in the first quarter of 2025, according to the latest Consumer Expectations Survey (CES) conducted by the Bangko Sentral ng Pilipinas (BSP). The decline in sentiment was largely attributed to concerns over rising prices, declining incomes, and reduced job opportunities.
The overall consumer confidence index (CI) fell to -13.0 percent in Q1 2025, down from -11.1 percent in Q4 2024 and -10.9 percent in Q1 2024. A negative CI indicates that more consumers are pessimistic than optimistic about economic conditions.
The BSP monitors the CES closely as one of the key indicators in its monetary policy formulation.
In light of the results, the BSP reaffirmed its strong commitment to maintaining price stability, one of its primary mandates. Based on the central bank’s latest estimates, inflation is expected to remain manageable and within the government’s target range of 2.0 to 4.0 percent from 2025 through 2027. This forecast supports a favorable environment for investment and employment.
The survey also gauged consumer outlook for the near and medium term. Sentiment for the next quarter turned negative, with the CI dropping to -0.5 percent from 4.2 percent in the previous quarter and 2.7 percent in Q1 2024.
Despite short-term concerns, consumers remain optimistic about the year ahead. The CI for the next 12 months stood at a positive 12.4 percent, unchanged from the previous quarter but slightly lower than 13.4 percent in Q1 2024, indicating continued hope for improving economic conditions.
The BSP remains focused on its mandate to foster a stable macroeconomic environment and continues to implement measures aimed at sustaining consumer confidence and promoting inclusive growth.
