MANILA – Consumer spending will pick up in the fourth quarter, driven by holiday demand, even as growth in household spending slowed in the July to September period, Socioeconomic Planning Secretary Ernesto Pernia said Thursday.
Household spending grew 4.5 percent in the July to September period, from 5.9 percent in the second quarter and 7.2 percent in the third quarter of 2016, official data showed.
Pernia said higher fuel, electricity and food prices could have affected household spending in the third quarter this year.
“We are likely to see an uptick in consumer spending considering the holiday season,” Pernia told reporters.
Gross domestic product grew 6.9 percent in the third quarter, beating analysts’ estimates. The economy expanded by 6.7 percent in the second quarter and by 7.1 percent during third quarter of 2016.
Despite the reported contraction in September, Pernia said remittances were up for the third quarter.