The Bangko Sentral ng Pilipinas (BSP) published results from its latest quarterly Consumer Expectations Survey showing that consumer sentiment improved in Q1 2026, while expectations for Q2 2026 and the year ahead became less upbeat. The current quarter confidence index rose to -15.8 percent from -22.2 percent in Q4 2025, indicating reduced pessimism. Improved current sentiment reflected expectations of higher earnings, more stable employment, additional income sources, and more family members joining the workforce. The quarter-ahead confidence index fell to 1.8 percent from 3.6 percent, and the year-ahead index declined to 9.6 percent from 11.8 percent, driven by concerns about graft and corruption and higher inflation. Inflation expectations remained well-anchored, staying below the BSP’s 3.0 percent target for 2026 and within the ±1.0 percentage-point tolerance range. The survey was conducted from 22 January to 5 February 2026, before the onset of the ongoing Middle East conflict, with any effects expected to appear in subsequent rounds. The BSP said it is monitoring potential impacts on domestic prices and the broader economy and is prepared to take appropriate monetary policy action if oil price increases lead to more persistent inflationary pressures, while also having issued regulatory measures enabling banks to assist affected clients.
Central Bank of the Philippines 2026-04-24
Bangko Sentral ng Pilipinas reports improved Q1 2026 consumer confidence while near-term and year-ahead outlook softens
The Bangko Sentral ng Pilipinas reported improved consumer sentiment in Q1 2026, with the current quarter confidence index rising to -15.8 percent from -22.2 percent, while expectations for Q2 2026 and the year ahead weakened on concerns over graft, corruption and higher inflation. Inflation expectations remained below the BSP’s 3.0 percent target for 2026, and the central bank is monitoring potential spillovers from the Middle East conflict and stands ready to adjust monetary policy and support banks.