Metro Manila Retail 2H/2024

ECONOMIC OVERVIEW

The consumer confidence data from 2021 to 2024 reveals a fluctuating outlook with significant implications for the Metro Manila retail scene. After a steep decline in Q1/2021, consumer confidence showed gradual improvement through Q3/2022, particularly in long-term expectati ons, suggesting a strong period for real estate demand. This optimism likely fueled increased investments in both residential and commercial real estate.

Despite a low consumer confidence level in Q1/2023, the remainder of the year reflected a mixed signal for consumer confidence. Inflation remained high throughout the year, peaking at 8.6%, which put pressure on household budgets and dampened consumer sentiment. While there were signs of improvement in job markets and consumer spending, prices of basic goods continued to strain budgets. This trend carried into 2024, with consumers remaining cautious and uncertain, as concerns about inflation, the cost of living, and the broader economic outlook persisted.