Philippines Consumer Confidence Improves in Q1

Consumer confidence in the Philippines deteriorated sharply in Q2 2026, with the indicator falling to -42.0 from -15.8 in Q1, marking its weakest reading since Q4 2020 during the COVID pandemic. Sentiment weakened as consumers anticipated higher fuel and food prices due to the Middle East conflict, alongside weaker economic conditions, higher unemployment, and a softer Philippine peso. Concerns over governance issues and the perceived lack of sufficient government measures to mitigate rising prices further weighed on confidence. As a result, households became more pessimistic about the country's economic condition (-71.1 vs. -40.4 in Q1), family financial situation (-36.2 vs. -6.2), and family income (-18.7 vs. -0.8). Expectations also deteriorated for the next quarter (-16.3 vs. 1.8) and the next 12 months (0.2 vs. 9.6), pointing to a more cautious outlook amid persistent inflationary and geopolitical uncertainties.

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.