Consumer confidence rises to record on new mandate

The confidence level of Filipino consumers rose to a new record high with the fresh mandate of President elect Benigno "Noynoy" Aquino III and Vice President elect Jejomar Binay, according to a survey by the Bangko Sentral ng Pilipinas (BSP). Rosabel Guerrero, director of the BSP's Department of Economic Statistics, said in a press briefing Thursday that the consumer confidence index for the next 12 months rose to 10 percent in the April-June quarter from 5.1 percent in January to March. Results of the second quarter survey showed that it bested the previous record of 7.9 percent in the third quarter of 2007. It was also a turn around from -7.6 percent registered in the second quarter of 2009. The confidence index went positive at 5.1 percent only in the first quarter of the year after lingering in negative territory over the past seven quarters. "By contrast, with favorable expectations over the fresh mandate to be exercised by newly-elected national and local government officials, consumer confidence over the course of the next 12 months reversed gear and turned more positive," Guerrero said. There was also an improved sentiment over the next three months, she said, explaining that it seemed to mirror the rebound in consumer confidence in the US, China, Mexico, Hungary, Slovenia, and Czech Republic. The high record of optimism since the survey was made national in terms of scope is important, BSP Deputy Gov. Diwa Guinigundo said. It shows that consumers have a more favorable view of the trend in the unemployment rate, interest rate, and inflation, Guinigundo said. —VS, GMANews.TV