Consumer confidence in the Philippines improved in the first quarter of the year, according to a recent survey, before the escalation of conflict in the Middle East.
The increase reflects optimism among Filipino households about the economy and employment prospects during the period. However, the survey was conducted prior to rising geopolitical tensions in the Middle East, which could weigh on sentiment in subsequent quarters.
Analysts noted that the positive sentiment was supported by stable inflation and steady income growth. The government's infrastructure spending and improving labor market conditions also contributed to consumer optimism.
Despite the quarterly uptick, experts cautioned that external risks, including the Middle East conflict and potential oil price shocks, may dampen confidence moving forward. The second quarter survey will provide a clearer picture of how geopolitical events are affecting Filipino consumers.