MANILA - Consumer sentiment is more pessimistic in the fourth quarter as the overall confidence index (CI) decreased to -14.6 percent from the -12.9 percent the previous quarter, a central bank survey released Friday showed.

"The decline in the index in Q4 2022 indicates that the number of households with pessimistic views increased and continued to outnumber those with optimistic views," the Bangko Sentral ng Pilipinas' Consumer Expectation Survey showed.

Consumers are more pessimistic about the country's economic condition, and less pessimistic about the family's financial situation while sentiment is steady for family income, data showed.

Per consumer group, the low-income group is "less pessimistic", while sentiment is "steady" for the middle-income group while the high-income group is "more pessimistic," the survey showed.

For the quarter, the consumer sentiment on buying big-ticket items was also more pessimistic as the CI declined to -74.5 percent from -72 percent in the previous quarter, the BSP said.

Meanwhile, the percentage of households with loans slightly decreased to 24 percent in the last 12 months from 24.9 percent in Q3, data showed.

The percentage of households with savings in the country rose to 30.5 percent from 27.5 percent in Q3 "with all income groups registering an increasing trend," the central bank said.

Consumers expect lower unemployment rate, a weaker peso as well as higher interest rate and inflation rate in the quarter, according to the survey.

Inflation hit 8 percent in November, which is double the upper limit of the 2 to 4 percent government target. BSP Gov. Felipe Medalla said inflation in November is not the peak yet.

The Monetary Board on Thursday hiked the country's key interest rate, used by banks to price loans, to 5.5 percent to cool down inflation.

• Inflation quickens further to 7.7 percent in October, highest in nearly 14 years
• BSP hikes key rate by 50 basis points to 14-year high of 5.5 percent

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