Consumers remain optimistic about the economy over the next 12 months, driven by prospects of higher incomes, more job opportunities, and stable inflation rates, according to a survey by the Bangko Sentral ng Pilipinas (BSP).

BSP’s poll showed optimism for the long-term outlook was a reversal of a pessimistic view in the first half based on the latest Consumer Expectations Survey (CES).

The CES compared results from a similar poll in the fourth quarter with those collected in the first quarter of this year.

The confidence index for the next 12 months remained unchanged at 12.4 percent.

Positive viewpoint for families

BSP said respondents feel more upbeat about their families’ financial conditions than the country’s overall economic growth. The survey showed members of the middle class exhibit the highest level of optimism.

Households interested in buying real estate increased to 5.7 percent from 5.0 percent.

However, consumers still expect interest rates to rise and the peso to weaken against the US dollar over the long term, leading to an inflation average of 3.8 percent or near the BSP’s maximum target of 4 percent.

BSP said the inflation outlook could be driven by household expectations of higher spending on food and groceries, problems with the government’s anti-inflationary policies and programs, and a limited supply of goods and services.