Consumer sentiment improves in Q3 2021 and for Q4 2021, but is less optimistic for the next 12 months
Based on the Q3 2021 survey results, consumer sentiment in the country continued to improve for Q3 2021 as the overall confidence index (CI) was less negative at -19.3 percent from-30.9 percent in Q2 2021.
Notably, the consumer outlook has been improving steadily since Q3 2020, the quarter when the index reverted to negative mainly due to the COVID-19 pandemic. The higher Q3 2021 CI, although remaining negative, showed that the number of households with optimistic views increased relative to the number in Q2 2021, but was still less than those with pessimistic views during Q2 2021.
According to respondents, their improved outlook during Q3 2021 was brought about by their expectations of: (a) availability of more jobs and more working family members, (b) additional/higher income, and (c) effective government policies and programs, particularly in addressing COVID-19-related concerns, such as the availability and rollout of vaccines, provision of financial assistance, and easing of quarantine restrictions.
Similarly, consumer sentiment for Q4 2021 improved as the CI increased to 2.7 percent from the Q2 2021 survey result of 1.3 percent. However, the respondent’s outlook for the next 12 months was less optimistic as the CI declined to 18.6 percent from the Q2 2021 survey result of 19.8 percent. Respondents attributed their optimism to the following expectations: (a) availability of more jobs, (b) additional and high income, (c) effective government policies and programs, and (d) stable prices of commodities.
Consumer outlook generally improves across the three component indicators and across income groups in Q3 2021 and for Q4 2021 and the next 12 months
The improved consumer sentiment in Q3 2021 and for Q4 2021 was observed across the three component indicators of consumer confidence, namely, the country’s economic condition, family’s financial situation, and family income.
Consistent with the national trend, consumer confidence across income groups also improved in Q3 2021, though remaining negative, from the Q2 2021 survey results. Aside from the aforementioned reasons cited for the less pessimistic outlook in Q3 2021, consumer confidence for the middle- and high-income groups improved as they anticipated availability of permanent employment.