Typhoon damages pull down consumer confidence in Q4

MANILA, Philippines - The damages caused by typhoons Pedring and Quiel last September pulled down the confidence level of Filipino consumers in the fourth quarter of the year after improving in the third quarter, results of a survey conducted by the Bangko Sentral ng Pilipinas (BSP) showed.

The Consumer Expectations Survey for the Fourth Quarter 2011 showed that the confidence level of Filipino consumers worsened to -20.6 percent in the fourth quarter after improving to -18.7 percent in the third quarter of the year. The overall consumer confidence index declined to -23.1 percent in the first quarter of the year and -24.1 percent in the second quarter from -8.5 percent in the fourth quarter of the year.

BSP Assistant Governor Cyd Tuano Amador told reporters that the survey was conducted from Oct. 3 to Oct. 14 covering over 6,000 respondents or immediately after the destructive typhoons Pedring and Quiel.

“They cited homegrown sources of weaknesses and not too many cited global developments,” Amador stressed.

She pointed out that respondents cited the damages caused by the weather disruptions in September rather than the economic slowdown in advanced economies led by the US as well as the debt crisis in Europe.

Rosabel Guerrero, director of the BSP’s Department of Economic Statistics (DES), blamed the less favorable outlook of majority of the respondents to the damages to business and crops caused by typhoons Pedring and Quiel last September as well as the higher prices of basic commodities, and rising unemployment level.

Typhoon Pedring battered the country last Sept. 27 followed by Quiel last Sept. 30.

“This indicates that the number of households with an optimistic view decreased and continued to be less than those who think otherwise,” Guerrero said.

For the current quarter, the sentiments of Filipino consumers on economic conditions improved to -25.4 percent from -26.4 percent in the third quarter but that on family financial situation worsened to -24 percent from - 22.4 percent and that of family income likewise declined to -12.3 percent from -7.4 percent.

“The decline in consumer confidence for the current quarter was driven by less favorable outlook on family finances and family income, which outweighed the improvement in confidence on the country’s economic condition,” she said.

She added that the high price of goods and services as well as poor harvest and low income dampened the sentiments of Filipino consumers on family finances offset the expectations of increased number of investors in the country that contributed to the upbeat outlook on the economy.

Latest data from the National Statistical Coordination Board (NSCB) showed that the country’s domestic output eased to 3.2 percent in the third quarter of the year from 7.3 percent in the same quarter last year bringing the average gross domestic product (GDP) growth in the first nine months of the year to 3.6 percent.