Philippines Consumer Mood Weakens in Q2

The consumer confidence indicator in the Philippines dropped to -22.2 in the fourth quarter of 2025 from -9.8 in the third quarter. This was the lowest reading since the fourth quarter of 2021, primarily due to concerns over graft and corruption in the government, higher inflation, lower household income, and adverse weather conditions and other natural calamities. All three major component indices declined. The overall economic condition index plunged to -48.4, its lowest in five years, from -24.4 in the previous quarter. The family financial situation index fell to -14.6 from -7.1, while the family income index fell back into negative territory at -3.5 after three consecutive quarters of positive readings. The consumer outlook also weakened for both the next quarter (3.6 vs 6.9 in Q3) and the next 12 months (11.8 vs 14.1), reflecting the same concerns weighing on the current quarter.

The consumer confidence indicator in the Philippines rose to -9.8 in the third quarter of 2025 from -14 in the previous period. The latest figure marked the highest reading since the third quarter of 2023, mainly driven by new income sources, higher earnings, more working family members, having a stable job, and greater employment opportunities. Among the component indicators, sentiment was largely unchanged on family income (2.2 vs 1.6 in Q2) and financial situation (-7.1 vs -8), while views on the overall economy turned less pessimistic (-24.4 vs -35.6). Notably, the family income index remained positive for the third consecutive quarter, indicating sustained optimism in household inflows. The consumer outlook also improved for both the next quarter (6.9 vs 0.6) and the next 12 months (14.1 vs 11.8), supported by expectations of higher income, additional earnings, more job openings, and stable prices of goods and services.

The consumer confidence indicator in the Philippines declined to -14 in the second quarter of 2025 from -13 in the previous period. It marks the weakest consumer confidence since the third quarter of 2024, due to higher inflation, lower family income, and fewer job opportunities. Among the component indicators, respondents were more pessimistic about the country’s economic condition (-35.6 vs -33.9 in Q1) and their family’s financial situation (-8.0 vs -6.1). However, views were more optimistic regarding their family income (1.6 vs 1.0). Meanwhile, consumer expectations for the country’s economic prospects over the next 12 months slightly fell from the previous quarter (11.8 vs 12.4 in Q1), and were also lower than the 13.5 recorded in Q2 of the previous year.