Philippine consumer confidence sinks as wallet worries rise

Consumer confidence in the Philippines fell sharply in the second quarter of 2026, as more households expected higher food and fuel prices tied to the Middle East conflict, higher unemployment and a weaker Philippine peso, according to the Bangko Sentral ng Pilipinas.

The BSP said its overall consumer confidence index declined across all reference periods in its latest quarterly Consumer Expectations Survey.

Overall consumer confidence index

Survey period	Current quarter	Next quarter	Next 12 months
Q1 2026	-15.8	1.8	9.6
Q2 2026	-42.0	-16.3	0.2

A positive confidence index means more respondents are optimistic than pessimistic about the country’s economic condition, family financial situation and family income.

A negative confidence index means more respondents are pessimistic than optimistic on those measures.

The current-quarter confidence index dropped to -42.0 in the second quarter from -15.8 in the first quarter.

The next-quarter index turned negative at -16.3 from 1.8, while the next-12-month index weakened to 0.2 from 9.6.

Governance concerns also weighed on sentiment, including graft and corruption and what respondents saw as insufficient government policies and programs to cushion the impact of rising prices.

Households also expected higher spending on essential goods and services, suggesting that food, utilities and other basic needs remained central to family budgets.

At the same time, consumers were less inclined to buy big-ticket items such as motor vehicles and real properties.

Households were also less likely to borrow and save, reflecting a more cautious view of their finances as prices and job concerns weighed on spending decisions.

Year-ahead inflation expectations rose to 3.3%, up from 2.7% in the first quarter, slightly above the BSP’s 3% inflation target but still below the 4% tolerance ceiling.

Respondents who expected higher inflation cited rising food and utility prices, insufficient government measures to address inflation and tighter supply conditions.

The BSP said it continues to monitor the impact of the Middle East conflict on domestic prices and the broader economy.

The Consumer Expectations Survey is one of the BSP’s key economic surveillance tools, with results used as forward-looking indicators in monetary policy formulation.

The second-quarter survey was conducted from April 6–18, 2026, using samples drawn from the Philippine Statistics Authority’s 2023 Geo-Enabled Master Sample for household-based surveys.

The survey covered 5,503 households nationwide, including 2,476 in the National Capital Region and 3,027 outside the region.

The nationwide response rate was 98.4%, with 5,415 completed responses and a sampling error margin of plus or minus 1.3 percentage points.