Filipino consumers confidence as expected took a hit with the typhoon damages affecting businesses and the economy but based on the latest central bank survey, consumer sentiments 12-month outlook is still on the positive side.

“(But) despite the decline in consumer sentiment (more) think that they are better off now than they were a year ago, when the effects of the global financial crisis were more pronounced,” the BSP’s fourth quarter Consumer Expectations Survey (CES) report said.

The latest CES also concluded that Filipino consumers view the recent typhoons adverse effects as temporary and that businesses and the economy will recover. “The consumers expect that the rise in unemployment rate will not persist that prices of goods will stabilize and that family income will increase in the year ahead,” BSP said.

The CES focuses on three main topics when questioning participants. These are economic condition, family income and overall financial situation. Based on the report, respondents think all three indicators will “worsen” and show weakness. “Consumers are most concerned about the domestic economy, particularly job availability and good governance issues. On a year-to-year basis, however, improvements were observed in consumer outlook on these indicators,” the CES paper said.

Of those surveyed, BSP said respondents belonging to the high-income group were more optimistic about financial situation and family income in the short term. The middle-income group, which was majority of the surveyed, was the pessimistic sector as far as financial situation was concerned. The lower-income group mirrored the sentiments of the middle-income group.

The CES also included questions about consumers buying and spending conditions, which for the dated tally, were less favorable.

For example, most households surveyed expect increased spending on basic goods and services despite the stagnant condition of their income. As expected, fourth quarter buying conditions, despite the Holiday season, were “bearish,” BSP said, because of the “general weakness” of the economy.