Weak spending in PH outpaces regional median

Amid bad weather and economic headwinds, consumer spending in the Philippines further slowed in the third quarter of 2025, according to global financial giant Visa.

- By BEN ARNOLD DE VERA

“Thailand, the Philippines, and Vietnam struggled with weak tourism, subdued domestic demand, and manufacturing slowdowns, leading to quarterly contractions in their respective SMIs,” read Visa Business and Economic Insights’ Asia-Pacific Spending Momentum Index (SMI) report for October 2025, published last week.

According to Visa principal Asia-Pacific economist Simon Baptist and Asia-Pacific economist Minakshi Barman, the Philippines’ SMI declined by 3.7 points during the July-to-September period.

This drop “[reflected] the combined effects of seasonal slack from the rainy and typhoon season, the culturally observed ‘ghost month’ phenomenon—a time of caution and observance for many households—plus subdued domestic demand, global trade headwinds, and ongoing concerns over household income and inflation,” the report explained.