Consumer Pulse Q3 2022

The Philippine economy grew at 7.4% in Q2, the slowest in the recent three quarters.  

The slower pace of the economic recovery was a result of rising inflation, weaker global demand, and supply chain disruptions.¹ 

The Philippines continued to experience rising prices of goods and services; the inflation  rate sat at 6.3% in August. This elevated inflation rate may serve as a trigger for the central bank to hike rates even further, pushing up borrowing costs for businesses and consumers. In addition, amid uncertainty about inflation, consumers started cutting back on  discretionary spending and increasing savings.  

Facing economic headwinds, consumers grew less positive; fewer respondents expected  income growth in the next year and felt optimistic about their household finances. However, Millennials appeared to remain relatively confident; more respondents expected their incomes to stay the same and fewer expected a decrease. In addition, the percentage of Millennials who felt optimistic about their finances in the next 12 months increased  in Q3 to rank the highest among all generations. 

¹ Socioeconomic Planning Secretary Arsenio Balisacan