Philippines Consumer Confidence Improves in Q3

The consumer confidence indicator in the Philippines rose to -29.8 in the third quarter of 2026 from -42 in the previous quarter, which marked the weakest reading since Q4 2020 during the COVID pandemic. The improvement was driven by expectations of higher earnings, additional sources of income, and more stable employment. All three major component indices became less negative. The overall economic condition index rose to -59.4 from -71.1, while the family financial situation index increased to -20.3 from -36.2 and the family income index improved to -9.7 from -18.7. Meanwhile, the consumer outlook for the next quarter remained negative but moved sharply closer to zero at -0.8 from -16.3, while the outlook for the next 12 months rose further into positive territory to 9.1 from 0.2, signaling greater optimism about future economic conditions and household finances.

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).