Latest Stories

Businesses less optimistic about Q3 prospects

Market volatility dampens local trade sentiment, says BSP


Local businesses were slightly less optimistic about prospects in the third quarter amid fears that volatility in financial markets could dampen the real economy.

Results of the Bangko Sentral ng Pilipinas’ (BSP) quarterly Business Expectations Survey (BES) showed that companies with rosy outlooks still outnumbered the pessimists, although the gap between the two was slightly narrower than the previous three-month period.

“The sentiment of businesses in the Philippines mirrored the weaker outlook in Hong Kong, South Korea, and India, but was in contrast to the more favorable sentiment of businesses in the United States, the United Kingdom, Canada, Germany, and New Zealand,” the BSP said in reporting the survey results.

The overall confidence index for the third quarter—which marks the height of the country’s rainy season—slumped to 42.8 percent, lower than the record high of 54.9 percent in the second quarter.

The confidence index is the difference between companies that said they were optimistic and those that believed otherwise.

Companies covered by the survey cited lower seasonal demand, possible operational interruptions due to bad weather, stiffer competition from China, and volatile movement of the peso as the main reasons for the deterioration in their confidence, the BSP said.

However, the same survey showed that businesses saw conditions improving in the fourth quarter of the year when demand is usually strongest.

The confidence index for the October to December period of the year reached 60 percent—a record high.

“This suggests that the growth momentum could accelerate in the last quarter of 2013,” the BSP report said.

Historically, the BES has a close correlation with the country’s GDP, BSP Deputy Governor Diwa C. Guinigundo said during a press conference.

“You could say [the BES is] a leading indicator,” Guinigundo added.

The BSP said the rosier outlook for the last quarter of the year was brought on by the usual pickup of business during the holiday season, continued increase in orders and projects leading to higher volume of production, and the introduction of new product lines.

Guinigundo said that the better forecast for the fourth quarter could be an indication that businessmen expect the volatility in financial markets to subside soon.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bangko Sentral ng Pilipinas , BSP , Business , economy , Markets and Exchanges

  • just_the_guy

    “…slightly less optimistic…” Kakatawa talaga, maisingit lang yung “less optimistic.” Forget the “slightly.” The critics have already planted in the readers’ mind that business is “less optimistic.” Nevermind that the “…quarterly Business Expectations Survey (BES) showed that companies with rosy outlooks still outnumbered the pessimists…”

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • SMIC to issue P15-B bonds
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace