FX.co ★ Philippines Consumer Morale Improves to 2-Year High

In the third quarter of 2025, the Philippines saw its consumer confidence indicator climb to -9.8, an improvement from the -14 observed in the previous quarter. This is the highest level recorded since the third quarter of 2023, driven primarily by new income sources, increased earnings, more family members contributing to household income, stable employment, and enhanced job opportunities. Among the component indicators, the sentiment regarding family income showed little change (at 2.2 compared to 1.6 in the second quarter), and the outlook on financial situations slightly improved (-7.1 compared to -8). Meanwhile, perspectives on the overall economy grew less pessimistic (-24.4 versus -35.6). Notably, the family income index sustained a positive streak for the third consecutive quarter, signifying continued optimism about household income inflows. Consumer expectations also brightened for both the upcoming quarter (6.9 compared to 0.6) and the forthcoming 12 months (14.1 compared to 11.8), buoyed by anticipated higher income, additional earnings, more job opportunities, and stable prices of goods and services.