Philippines Consumer Confidence Falls to 4-Year Low

Consumer confidence in the Philippines improved in the first quarter of 2026, with the indicator rising to -15.8 from -22.2 in the previous quarter, indicating easing pessimism among households. This was supported by expectations of higher earnings, more stable employment, additional income sources, and more family members joining the workforce. On the component indicators, views were less pessimistic about the country’s economic condition (-40.4 vs -48.4 in Q4), family financial situation (-6.2 vs -14.6), and family income (-0.8 vs -3.5). However, despite the improved current assessment, households became slightly more cautious about the near-term outlook. Weaker confidence was seen for the next quarter (1.8 vs 3.6 in Q4) and the next 12 months (9.6 vs 11.8).

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.