Filipino consumer sentiment eased in the fourth quarter of 2025, but expectations for the coming months remain firmly optimistic, signaling resilience and confidence in the country’s economic direction, according to the latest Consumer Expectations Survey (CES) of the Bangko Sentral ng Pilipinas (BSP).
The BSP survey showed the overall consumer confidence index (CI) turning more negative at -22.2 percent in the fourth quarter, down from -9.8 percent in the previous quarter.
The softer sentiment reflected temporary concerns among households, including issues related to graft and corruption, higher inflation pressures, lower household income, as well as the impact of unfavorable weather conditions and natural calamities.
Despite these headwinds, the forward-looking outlook tells a more encouraging story. Consumer confidence for the next quarter remained positive at 3.6 percent, while expectations for the next 12 months stood at a stronger 11.8 percent. These figures suggest that Filipino households anticipate improved economic conditions and better financial prospects as the economy moves into 2026.
Notably, consumers expect inflation over the next 12 months to remain within the National Government’s target range. This indicates that household inflation expectations are well anchored, a critical factor in supporting spending decisions, investments, and job creation. Stable inflation expectations also reinforce confidence in the effectiveness of monetary policy and the broader macroeconomic framework.
The BSP emphasized that the CES remains a vital economic surveillance tool, providing valuable insights into household sentiment and behavior. The survey results serve as key inputs in the central bank’s monetary policy formulation, helping ensure that policy decisions remain responsive to both current conditions and future expectations.
While short-term challenges weighed on confidence toward the end of 2025, the sustained optimism for the near and medium term underscores the underlying resilience of Filipino consumers and their belief in the economy’s capacity to recover and grow in the year ahead.