Consumer confidence in the Philippines improved in the first quarter of 2026, although households remain less optimistic about the months ahead, according to the latest survey by the Bangko Sentral ng Pilipinas.

Results of the Consumer Expectations Survey showed the confidence index (CI) for the current quarter rose to -15.8 percent from -22.2 percent in the previous quarter, reflecting reduced pessimism among households. The improvement was attributed to expectations of higher income, more stable employment, and additional earning opportunities.

However, sentiment for the near and longer term weakened. The CI for the next quarter dipped to 1.8 percent from 3.6 percent, while the year-ahead outlook declined to 9.6 percent from 11.8 percent.

The BSP said concerns over inflation and issues such as graft and corruption weighed on consumer expectations, affecting confidence in economic conditions and public service delivery.

Despite this, inflation expectations remained well-anchored, staying below the central bank’s 3-percent target for 2026 but within its allowable range.

The survey was conducted before the escalation of tensions in the Middle East, with the BSP noting that any impact from the situation may be reflected in future survey results.

The central bank said it will continue to monitor developments, including potential effects of rising oil prices, and stands ready to implement policy measures if needed to manage inflation and support the economy.

(File Photo: PNA)