Consumer sentiment was more pessimistic in the fourth quarter as the overall confidence index (CI) decreased to -14.6 percent from -12.9 percent in the third quarter.

The decline in the index in the fourth quarter indicates that the number of households with pessimistic views increased and continued to outnumber those with optimistic views.

The sentiment across the three component indicators of consumer confidence was mixed in the fourth quarter, i.e., more pessimistic for the country’s economic condition, less pessimistic for the family’s financial situation, and steady for family income.

Similarly, consumer sentiment was also mixed across income groups, i.e., less pessimistic among the low-income group, steady among the middle-income group, and more pessimistic among the high-income group.

Consumer sentiment on buying big-ticket items was more pessimistic in the fourth quarter as the CI declined to -74.5 percent from -72 percent in the third quarter.

In the fourth quarter, 24 percent of households availed of a loan in the last 12 months, slightly lower than the 24.9 percent recorded in the third quarter.

However, the percentage of households with savings in the country rose to 30.5 percent from 27.5 percent in the third quarter with all income groups registering an increasing trend.

Consumers anticipated that interest and inflation rates may increase, the peso may depreciate against the US dollar, and the unemployment rate may decline in the fourth quarter, first quarter of 2023 and the next 12 months.

In particular, consumers expected the inflation rate may rise to 5.9 percent for the next 12 months, breaching the upper end of the National Government's inflation target range of 2 to 4 percent for 2022 and 2023. BSP