THE PHILIPPINES’ consumer spending momentum in the third quarter was little changed compared to a quarter earlier as price pressures intensified in the face of a weak jobs market, Visa said.
According to Visa’s spending momentum index for the third quarter, the Philippine score inched up to 91.5, up 0.2 from the second quarter.
“However, the continued weakness in Philippines’ overall SMI reflects higher inflation and weaker labor market conditions weighing on household spending,” it said.
The Philippine consumer spending reading ran counter to the 0.9 decline in the emerging east Asia score to 94.2.
According to the report, discretionary spending SMI for the Philippines rose to 92.9, while non-discretionary spending was at 91.3.
The Visa SMI measures the breadth of year-over-year change in household spending within an economy, including the share of households with increased spending compared with those where spending was stable or declined.
SMI Values above 100 indicate broad-based net acceleration in economic momentum, while values below 100 indicate year-on-year contraction.
The Philippines, along with Malaysia, Indonesia, and India, had SMIs below 94, which meant it had a contracting spending momentum. — Aaron Michael C. Sy