Friday, May 15, 2009

The government spins

With the ongoing economic uncertainties, Filipinos are saving more and spending less, a recent survey found. According to the Nielsen consumer confidence survey, 69 percent of Filipino consumers prefer to put cash left after paying for basic expenses into savings--up 3 percentage points from the 66 percent in the last six months of 2008.The survey also said that less consumers are spending on new clothes (35 percent from 39 percent), pay off debts (32 percent from 37 percent) or go out for a vacation (27 percent from 28 percent).

The Nielsen online survey showed that overall consumer confidence level in the Philippines dropped with the rest of the world. The Filipinos' decline in spending is forced, we have nothing to spend anyway.

But expect this cute administration to find things differently. According to its own consumer expectations survey, negative sentiments among consumers declined significantly in the first three months of the year. But it glossed over the fact that the sentiments are still negative!

The survey said optimism was on the rise only among low-income families, these families have hit rock bottom, they have nowhere to go but up. The higher income families are more pessimistic. Buying intention of consumer households also showed improvement, however, the survey proponents has yet to track whether these buying intentions translated to actual increases in consumption.

Well, apparently not, as the independent Nielsen survey showed.

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