Filipino consumers grew more pessimistic about the economy in the first quarter, citing faster increases in the prices of goods and services, declining incomes, and fewer job opportunities as the main reasons.

Results of the latest Consumer Expectations Survey (CES) of the Bangko Sentral ng Pilipinas (BSP) showed that the overall consumer confidence index dropped to -13 percent in the first quarter of 2025 from -11.1 percent in the previous quarter and -10.9 percent in the first quarter of 2024.

A negative CI means more respondents are pessimistic than optimistic.

Results of the CES are among the factors the BSP monitors for the conduct of monetary policy.

In response to the survey results, the BSP reiterates its commitment to its mandates, among which is helping keep inflation manageable.

Based on its latest estimates, inflation?or the increase in prices of goods and services?is expected to remain manageable and within the target range of 2.0-4.0 percent for this year up to 2027. Within-target inflation supports investments and job creation.

In addition to their current sentiment, consumers were asked about their sentiment for the succeeding quarter and the next 12 months.

Survey results indicated that consumer sentiment for the next quarter reverted to negative territory, with the CI settling at -0.5 percent, down from 4.2 percent in the previous quarter and 2.7 percent in the first quarter of last year.

Nevertheless, consumers expect economic prospects to improve in the next 12 months.

Survey results showed a positive CI at 12.4 percent for the next 12 months, unchanged from the previous quarter but slightly lower than the 13.4 percent recorded in the first quarter last year. Bangko Sentral ng Pilipinas