THE number of Filipinos who actually own a savings account in a bank somewhere and those other Filipinos who plan to have one at some point forward increased under the latest survey on consumer confidence conducted each quarter by the Bangko Sentral ng Pilipinas (BSP).
The survey’s demographic detail has, likewise, changed, as the incidence of saving among poor households increased even as the same deteriorated among the middle-class and well-off families.
This developed even as consumer sentiment soured somewhat during the period, the consumer barometer having marginally declined to minus 6.4 percent in the April-to-June period from minus 5.7 percent a quarter earlier.
The negative sign indicates the predominance of pessimists among consumers over their optimist counterparts that, in this case, increased slightly while remaining narrow.
In the survey, the BSP said the percentage of households with savings in the April-to-June quarter increased to 33.2 percent, from 32.7 percent a quarter earlier.
According to respondents, they save money for the following reasons: emergencies, retirement, health and hospitalization, education, and business capital and investment.
Broken down into sectors, households with savings increased among the low-income group, but decreased for both the middle- and high-income groups.
Across geographical distribution, meanwhile, data from the BSP also show that the increase in savings was most notable in areas outside the National Capital Region.
The act of saving is essentially a defensive move undertaken in this case by Filipinos who took a careful look at the weather disruptions presented by the ongoing El Nino and the untested macroeconomic grasp of the incoming administration under President-elect Rodrigo R. Duterte.
The BSP survey also shows that about one-third of surveyed savers still shy away from putting their money in banks.
About two-thirds, or 65.9 percent, of household savers had bank-deposit accounts, which is where they keep their money. Forty-seven percent, meanwhile, kept their savings at home; while another 26.4 percent put their money in cooperatives, so-called paluwagan schemes, in credit or loan associations and in such other investment tools as insurance.
This saving behavior was reflected rather clearly in the BSP’s quarterly consumer expectations survey (CES). The survey results showed a decline in optimism to minus 6.4 percent from minus 5.7 percent reported a quarter earlier.
Despite the dip, the BSP said the decline was “marginal” and the overall outlook was “broadly steady”.
The current quarter consumer confidence, while remaining negative, was the second-highest reading since the nationwide survey started in 2007, the BSP said,
“This indicates that the pessimists continued to outnumber the optimists, but the margin, while increasing slightly, remained narrow,” it added.
The increase in the number of employed family members, increasing family income due to higher salary and stronger business activity, lower household expenses as well as debt payments, and improvements in the peace and order situation were the factors behind the change in consumer outlook for the period.
The other factors cited by respondents helping keep confidence broadly steady during the current quarter included assistance from government such as the Pantawid Pamilyang Pilipino Program (4Ps) and the coming change of administration as well as the election of new government officials.
The positive sentiments were was counterbalanced by the adverse effects of El Niño on crop production which resulted in poor harvest, the BSP said.