Filipino consumers think financial prospects and buying conditions will improve in the third quarter while the next 12 months are also looking more positive in outlook, the latest central bank survey said.

The Bangko Sentral ng Pilipinas’ (BSP) quarterly Consumer Expectations Survey (CES) said consumers level of confidence was boosted by news that both domestic and the global economy are on its path to a recovery. The declining inflation, easing interest rates and stable local currency contributed to improved sentiments.

Based on the latest results of the BSP-CES, consumers belonging to the high-income group are more confident about their own financial condition. “Consumer sentiment was upbeat in the high and middle-income groups in the third quarter,” said the BSP director for economic research Rosabel Guerrero.

The high-income group had a high optimism level on their family income based on a consumer index of 26.6 percent. Their perceived family financial situation also showed better consumer index at 14.8 percent for this quarter. This was the highest since 2007 when the first CES was conducted and BSP said this showed consumers “brighter outlook” on business and job conditions in the third quarter.

As for the middle-income group, the sentiment was also “bullish” with a consumer index at 2.5 percent from -1.1 percent in the second quarter. But as expected the consumer confidence in the low-income group was lower and their issue on their own financial condition has not changed quarter-on-quarter. Sentiments may have been affected by expectations that household expenditures will increase in the last quarter of the year.

In the latest survey, Guerrero said consumers expect buying conditions will be more favorable this quarter and into the next 12 months. About 18 percent of respondents said it is a favorable time to buy big-ticket items this quarter such as consumer durables, motor vehicles and housing.

“The positive outlook of consumers on buying conditions for big-ticket items for the third quarter spilled over to the next 12 months,” according to the CES report. The percentage of respondents that signified intentions to buy big-ticket items in the year ahead stood at 9.5 percent, higher than 7.5 percent in second quarter and 2008’s third quarter CES.

BSP said consumers expect prices of basic goods and services will go up in the next 12 months but inflation will remain controlled.

In the meantime, consumers anticipate that the peso would depreciate against the US dollar in the year ahead, the central bank said. “Unemployment and interest rates were expected to increase (in the year ahead) but the number of respondents who anticipated an increase in the unemployment rate declined and those who anticipated a rise in interest rates was broadly the same quarter- on-quarter.”

The BSP surveyed 5,315 households for the latest CES, which covered the period July 1 to 15. Of the surveyed households, about 2,717 or 51.1 percent are located in the National Capital Region while 2,598 or 48.9 percent are from the regions outside of the NCR.